Table of Content

Introduction

Product Profile

Product Mix

Consumer Decision Making Model

Consumer Research (Methodology)

Questionnaire

Analysis and Interpretation

Conclusion and Suggestion

Bibliography

Introduction

NIL introduced the Maggi brand to Indian consumers when it launched Maggi 2 Minute Noodles, an instant food product, in 1982 (Refer to Exhibit III for the history of the Maggi brand). At that time, Indian consumers were rather conservative in their food habits, preferring to eat traditional Indian dishes rather than canned or packaged food. In fact, NIL was trying to create an entirely new food category, instant noodles, in India. Initially, the company targeted working women on the premise that Maggi noodles were fast to cook and hence offered convenience.

However, this approach failed as was evident from the fact that the sales of Maggi noodles were not picking up despite heavy media advertising. To get to the root of the problem, NIL conducted a research, which revealed that it was children who liked the taste of Maggi noodles and who were the largest consumers of the product. After this, NIL shifted its focus from working women and targeted children and their mothers through its marketing. NIL's promotions positioned the noodles as a 'convenience product', for mothers and as a 'fun' product for children. The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this positioning.

NIL aggressively promoted Maggi noodles through several schemes like distributing free samples, giving gifts on the return of empty packs, etc. NIL's advertising too played a great role in communicating the benefits of the product to target consumers.

Through its ads, NIL positioned Maggi as a 'fun' food for kids which mothers could prepare easily. Taglines like 'Mummy, bhookh lagi hai' (Mom, I'm hungry), 'Bas 2-Minute,' (Only 2 minutes) and 'Fast to Cook Good to Eat' effectively communicated the product's benefits to target consumers.

These ads had become so popular that the tagline 'Bas 2-Minute' immediately reminded Indian consumers of Maggi noodles even several years after the ads were taken off the TV. Maggi's first product extension was Maggi instant soups launched in 1988. With the launch of Maggi soups, NIL had become a pioneer in the organized packaged soup market in India.

Product Profile

Type: Noodles

Industry: Food

Founded: 1890

Headquarter: Cham, Switzerland

About Nestle

• Nestle is a multinational packaged food company founded and head quartered in Vevey, Switzerland

• It was set up in 1866

• NIL is the Indian Subsidiary of Nestle

Nestle Product Range

Candy and Chocolates Frozen FoodsPet Food Specialty Items Maggi Seasoning Maggi Taste of AsiaIce cream BakingBeverages Bottle of water

• The Maggi brand originates from Switzerland where in 1863 Julius Maggi created the beginning of the Maggi brand

• In 1947 Nestlé acquired the Maggi brand.

• The brand is popular in Australia, India, South Africa, Brazil, New Zealand, Brunei, Malaysia, Singapore, Sri Lanka, Bangladesh, Fiji and the Philippines

• Maggi has launched different flavors in India: Maida, Atta, rice, multi grain, tomato, and chicken.

• Maggi noodles is recognized as a genre for instant noodles product category.

Maggi Product Extension

Maggi Ketchup Maggi Bhuna Masala Soups: Soups and Instant Noodles 2 Minutes Noodles: Masala, Chicken, Rice, Atta, Multigrain

Maggi’s Mantras

Promise of Quality, health and nutrition, easy to cook and tasty.

Brand Element

Slogan: me and meri Maggi. Jingle: http://www.youtube.com/watch?v=5ZIDu9J3oz8 Packaging: Yellow and Red pack URL: http://www.maggi.in/

Pre Requisite for Maggi

Transferability: Maggi ketchup, Maggi soup, Maggi bhuna masala Adaptability: packaging has been changed over the period of time Memorable: 2 minute noodles Meaningful: name “Maggi noodles” can be easily related to the instant noodles product

category Likeability: most favorite snack, whole family snack Protected: ® sign could be found on the packets of Maggi noodles

Evaluation of Print Ads and TV Ads

Fast to cook, good to eat: focused on educating customers about nutritional value of Maggi, convenient in cooking, healthy product.

Maggi 2 minute noodle: change in target market Taste bhi, health bhi: Maida isn't consider good for health, hence they came with Atta and rice

variant. Me and meri Maggi: emotional bondage with the customer. Earlier sharing Maggi moments on

the packet and now Big B narrates them on TV. (hostel, lakhan, rakhi’s wedding) http://www.youtube.com/watch?v=qhqubxGq7t4

Type of Appeal

• Emotions- Maggi ads also has emotional appeal as it shows a hungry child comes from outside and says that he is hungry and his mother says 2 minutes and prepares Maggi.

• Mr. Amitabh Bachchan narrating the stories of different consumers on television.

Interactive marketing/Social media

• Facebook: meri maggi fan page

• 1.83 million likes

Sales and Consumer Promotion activities

• Different pack sizes: Rs5 (chotu maggi), Rs 2 Maggi (specially for rural areas)• Different variants: Atta, multi grain, rice, tomato, chicken• Sharing magi moments

Market Segmentation of Maggi Noodles

Demographic, Behavioral, Psychographic

• Region and Usage Rate:

Urban : Heavy users Semi urban: Medium Users Rural: Light

• Occupation:

House wives and kids Working Professionals Students

• Social Class : Middle and upwards• Family Life cycle : Young, Married , and married with children• Life style : Hard press of time

Positioning

• Fast to cook-Good to eat• 2 minutes noodles

Target Market

• Primary Target: Children (>16 years)• Others :

FamilyHealth conscious people: Maggi Vegetable Atta NoodlesYoung professionals: Maggi Cuppa Mania*

(*) Cuppa Mania is a trend ally of today’s multitasking generation

Consumer Decision Making Process: Maggi

Consumer Decision Making Process, this basic psychological process plays an important role in understanding how consumers actually make their buying decision. Marketers must understand every facet of consumer behaviour in terms of “who, what, when, where, how and why”. Smart companies like MAGGI try to fully understand the consumer’s buying decision process – all their experiences in learning, choosing and using of the product.

Maggi has always considered the following steps:

1 Problem Recognition

This is the first stage of the Buying Decision where the buyer recognizes a problem or need. The need can be triggered by internal or external stimuli which a marketer must identify by gathering information from number of consumers. They can then develop marketing strategies that trigger consumer interest.

Nestle after carefully analysing the market, identified the need for a quick snack in India. They adopted the first mover strategy and launched Maggi in India in the year 1982 as an instant fast food.Thereafter, Nestle recognized the consumer’s need for Maggi in different sizes and introduced the 50gms, Double Pack and Super Saver Pack (s).Later on in the years 2005 and then 2006, consumer’s need for a healthy instant food was catered by launching Maggi Atta Noodles and Maggi Dal Noodles. These again emerged as successful products and were widely accepted by masses.Further to suffice the need for different taste, Maggi Rice Mania was brought in the market in Shahi Pulao, Chilli Chao and Lemon Masala flavors.2 Information SearchAn aroused customer will be inclined to search for more information. At this level, a person simply becomes more receptive to information about a product. There are four major information sources which are of key interest to the marketer. These are the personal sources (family, friends, and acquaintances), commercial sources (advertising, websites, packaging and displays), public sources (mass media, consumer rating organizations) and experiential sources (handling, examining and using the product).MAGGI has over the years well established itself in the market and has now become a household name. This has helped the brand gain popularity through word of mouth.

Maggi’s Mass Advertising Campaigns targeted consumers of all ages. Their advertisements have highlighted that Maggi is a good alternative available with the consumers when it comes to having a quick snack.

3 Evaluation of Alternative

Once all the consumers gather all the information he then evaluates the various option available to him. When evaluating the potential alternatives, consumer uses two types of information the first is the “list” of brands from which they plan to make their selection and the second is the criteria from which they plan to make their decision.

Beliefs and Attitude: Evaluations often reflects beliefs and attitudes. And these are acquired by experiences and learnings.MAGGI has always provided its consumers with something new from time to time which has developed a good belief in the brand and thus has helped them to choose them from their other alternatives. Their competitors like top ramen always find it difficult on the evaluation front with magi because of strong association of consumers with it.Awareness set is

Maggi Tom Ramen Wai Wai Cup of Noodles Chings

So out of the above awareness set the consumers decides to choose Maggi because after analyzing the different parameters of the brand Maggi was chosen as the best alternative among the rest leading to its maximum market share.

4 Purchase Decision

In the evaluation stage the consumer forms preferences among the brands in the choice set, the consumer may also form an intention to buy the most preferred brand .In executing a preferred intention the consumer takes up five sub decisions

Brand Dealer Quantity Timing Payment Method

In some cases consumer may decide not to formerly evaluate each and every brand; in other cases intervening factors may affect the final decision.

Because of the strong consumer awareness about the brand MAGGI, consumer generally prefer Maggi out of all the available brands , due to the mass distribution strategy adopted by Maggi, any consumer can easily purchase it from their local grocery store without wasting much of his/her time in searching for the product , Maggi comes in various sizes like single , double and

the supersaver packs so depending upon each individuals need Maggi is catering each and every segment of the society not to mention that as the size increase the saving on each pack increases.

5 Post Purchase

After the purchase the consumer might experience dissonance that stems from noticing certain disquieting features or hearing favorable things about other brands and will be alert to information that supports his/her decision. Marketer must monitor

Post Purchase Satisfaction Post Purchase Action Post Purchase Product Uses

6 Post Purchase Satisfaction

Satisfaction is a function of the closeness between expectations and the product’s perceived performance, if performance falls short of expectations the consumer is disappointed and if it meets the expectation the consumer is satisfied and if it exceeds the expectations then the consumer is delighted.

7 Post Purchase ActionsSatisfaction or dissatisfaction with the product will influence subsequent behavior if the consumer is satisfied he will exhibit a higher probability of purchasing the product again. The satisfied customer will also tends to say good things about the brand to others, marketers says “our best advertisement is the satisfied customer”.Post Purchase Use

Marketer should also monitor how buyers use and dispose of the product. A key driver of sales frequency is product consumption rate – the more quickly buyers consume a product the sooner they may be back in the market to repurchase it.

TITLE OF THE PROJECT

A study on acceptability and consumption pattern of Maggi Noodles in South Delhi Region.

OBJECTIVE

To understand the stimulus of Maggi Noodles as a brand on consumer mind set. To understand the customer satisfaction of Maggi Noodles. To understand the effectiveness of advertisement of Maggi Noodles To understand the perception of the people about Maggi Also to identifying the outliers causing decline in the customer satisfaction

Research Design

In this project we will use descriptive research design

Research Methodology

Primary data collection via questionnaire let alone online survey. Secondary data collection via internet Target population :- people in the age group of 18-50 years residing in south Delhi Sample size: - 50 people (approx.)

In this project with the help of advance descriptive statistics as well as with the help of sig sigma i.e. defect analysis we will understand the consumption pattern of Maggi noodles in south Delhi. This report will also help as to find out the outliers as well as non-value adding activities leading to decline in demand of the product and acceptance of competitors by consumer

Limitation of the research

Sample size of 50 respondents has been taken which is too small to generalize the trend. Study is limited only to south Delhi region. Research time was limited so in depth analysis could not be done.

Research Analysis

Ques1). Do you Buy Maggi Noodles

Response: Out of 50 Response we find that acceptability of Maggi Noodles in South Delhi is 100%

Variable Frequency PercentageYes 50 100%No 0 0%

Total 50

Yes100%

How Many people buy Maggi

YesNo

Ques2). Have you tried different variant of Maggi?

Response: Out of 50 respondents only 28 respondents tried other variants of Maggi Noodles

Have you tried Different Variants of Maggi Response PercentageYes 28 56%No 22 44%

Total 50

56%44%

Have you tried Different Variants of Maggi

YesNo

Ques3). Consumer of Maggi age group wise

Response: in this research we found that consumption of Maggi noodles is highest in 18-25 years age group, than 26-30 years age group

Age Group Percentage18-25 Years 23 46%26-30 years 18 36%31-40 Years 7 14%41-50 years 2 4%

Total 50

18-25 Years46%

26-30 years36%

31-40 Years14%

41-50 years4%

Age group Wise wise: How many people prefer to buy maggi

18-25 Years26-30 years31-40 Years41-50 years

Ques4). Consumption of Maggi occupation wise.

Response: Out of 50 respondent we found that consumption of Maggi noodle is very high in “Working men and women” that is 58% ( 29 respondent)

Occupation Response PercentageStudents 15 30%Parents 6 12%

Working Men/Women 29 58%Total 50

Students30%

Parents12%

Working Men/Women

58%

Occupation wise: How many people pre-fer to buy maggi

StudentsParentsWorking Men/Women

Ques5). Which Factor motivates you to buy this product?

Response: In this analysis we found that consumer is 100% satisfied with “Taste”, “Price”, Ease to Make” and out of 50 respondents 36 respondents are saying Maggi noodles are not god for health (C-sat: 28%).

Motivational factors Yes No Customer Satisfaction %Taste 50 0 100%Price 50 0 100%

Ease to make 50 0 100%Reliability 46 4 92%

Quality Assurance 43 7 86%Loyalty 35 15 70%

Good For Health 14 36 28%Total 288 62 82%

Taste17%

Price17%

Ease to make17%

Reliability 16%

Quality Assurance15%

Loyality12%

Good For Health5%

Motivational Factor

TastePriceEase to makeReliability Quality AssuranceLoyalityGood For Health

Ques6). Which of the following brand would you like buy if price is not taken into consideration?

Response: In this analysis we found that if price is not taken into consideration 46% respondent will buy

Maggi noodles and nearby competitor is Wai-Wai noodles that is 24 % (12 out of 50 Respondents).

Brand you would like to buy ( when price in not a concern) Result PercentageMaggi 23 46%Yippi 1 2%

Top Raman 9 18%Wai-Wai 12 24%

Knor 5 10%Total 50

Maggi46%

Yippi2%

Top Raman18%

Wai-Wai24%

Knor10%

Brand you would like to buy

Ques7). On the basis of past experience would you like to buy the product again and also suggest to you

family and dear ones?

Response: Out of 50 respondents 31 respondents would like to buy and refer this product to their family

and dear ones, let alone customer satisfaction level of this product is 62%

Yes 31No 19

Total 50Satisfaction level 62%

Yes62%

No38%

would you like to buy the product again

YesNo

Ques8). What comes first in your mind when you hear the word Maggi?

Response: Here we tried to check the perception of consumer towards the product and we found that

out of 50 respondents for 41 respondents Maggi is just “Noodles” and for rest of the 9 respondents

Maggi is a “Snacks”.

Maggi is a (Perception) PercentageNoodles 41 82%Fast food 0 0%

Snacks 9 18%None of these 0 0%

Total 50

Noodles82%

Snacks18%

Perception : Maggi is ?

NoodlesFast foodSnacksNone of these

Ques 9). Which of the following Maggi variants do you relish?

Response: Out of 50 Respondents we found 48 respondents (96%) relish on Maggi 2 minutes noodles

Maggi variants do you relish? Percentage2 minutes-Masala Maggi 48 96%

Atta noodles 1 2%Vegetable multi grain noodles 1 2%

Cuppa mania 0 0%Total 50

2 minutes-Masala Maggi

96%

Atta noodles2%Vegetable multi

grain noodles2%

Maggi variants do you relish?

2 minutes-Masala MaggiAtta noodlesVegetable multi grain noodlesCuppa mania

Categorization of Maggi noodles

On the basis of age group

Age group wise overall Category Outstanding Good Average Caution Alarming18-25 Years 9 11 2 1 026-30 years 6 8 3 1 031-40 Years 1 6 0 0 041-50 years 1 1 0 0 0

Total 17 26 5 2 0

Out of 50 respondent, 17 respondent’s thinks Maggi is “Outstanding”, for 26 respondents it is “Good” for 5 respondents it is “Average” product.

On the basis of Motivation:

Motivation wiseOutstanding 30

Good 17Average 3Alarming 0

Out of 50 respondents , motivation level of 30 respondents are “Outstanding”, for 17 it is “Good”, and for 3 it is “Average”.

O u t s t a n d i n g G o o d A v e r a g e A l a r m i n g

30

17

3

0

Moti vati on Wise

On the basis of Motivation and Perception

Motivation and Perception Wise ResponseOutstanding 22

Good 19Average 9Alarming 0

Out of 50 respondents, motivation and perception level of 22 respondents are “Outstanding”, for 19 it is “Good”, and for 9 it is “Average”.

O u t s t a n d i n g G o o d A v e r a g e A l a r m i n g

22

19

9

0

Moti vati on and Percepti on Wise

On the basis of Attitude

Attitude WiseGood 28

Average 22Bad 0

50

Here we found out of 50 respondents, 28 respondents have “Good”, 22 respondent have “Average” attitude towards the product

G o o d A v e r a g e B a d

28

22

0

Atti tude Wise

Questionnaire: Acceptance and consumption pattern of Maggi Noodles

Part A

1. Name of the Customer/ Wholesaler/Retailer : ___________________________________

2. Contact Detail : ____________________________________________________________

3. Age Group

18-25 years

26-30 years

31-40 years

41 to 50 years

4. To which category do you belong to?

Student

Parent

Working men/ women

Part B

5. Do you Buy Maggi Noodles

Yes

No

6. Have you tried various different variants of the product

Yes

No

7. Are you satisfied with the below mentioned features

Variable Yes NoTaste (Good or not)

Price (pocket friendly) Ease to make

Reliability Quality Assurance

Loyalty Good For Health

8. Which of the following Maggi variants do you relish?

2 minutes-Masala Maggi

Atta noodles

Vegetable multi grain noodles

Cuppa mania

9. Which of the following brand would you like buy if price is not taken into consideration

Maggi

Yippi

Top Raman

Wai-Wai

Knor

10. On the basis of past experience would you like to buy the product again and also suggest to you

family and dear ones

Yes

No

11. What comes first in your mind when you hear the word Maggi

Noodles

Fast food

Snacks

None of these

Findings

100% people buy Maggi noodles.

There is high brand awareness about Maggi noodles, People have been able to differentiate

Maggi noodles from other products available in the market and have positive perception.

Maggi noodles have a tough competition from Wai-Wai noodles and Top Raman.

Maggi noodles have a strong distribution channel. It is easily available in the shops.

Advertisement of Maggi noodles is very attractive to buy the product.

Packaging of Maggi noodles influence the consumers to make a buy decision.

People are very satisfied with the price of the Maggi noodles.

People buy Maggi noodles because they see some nutritional value in the product. Maggi noodles

contain calcium & iron which is god for health.

This product has not appealed to health conscious people because there are other substitutes (health

supplements) available in the market.

Recommendations:

Effectiveness of promotional activities should be increased.

Nutritional value should be improved like fat content should be reduced and other minerals

should be added in the product.

Establish Nestle’s own flagship outlet.

Educate Consumer through campaign

Use the package to describe the nutritious benefits

Do more market research to improve the product

Reference

www.nestle.com

http://www.maggi.in/

www.facebook.com

Marketing Management: Philip Kotler