marketing management report maggi in india
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Marketing Strategy of Maggi in IndiaTRANSCRIPT
Marketing Management
Term II – 2012 -2014
Section D, Group 5
Agrim Kumar 1211245
Aniket Ashok Karde 1211247
Sanket Deshpande 1211257
Khushal Dikha 1211270
Satya Surekha Y S 1211297
Sukrit Dhar 1211306
Venkata Rakesh Kolli 1211312
Submitted to
Prof. Srinivas Prakhya
Section D, Group 5 Page 2
Table of Contents
Executive Summary ................................................................................................................................ 4
Indian Noodles Market ........................................................................................................................... 4
Current Market Scenario .................................................................................................................... 5
Nestle Maggi Products ........................................................................................................................ 6
Competitors ........................................................................................................................................ 8
Research Premise and Methodology .................................................................................................... 10
Preliminary Research ............................................................................................................................ 11
Maggi Strategy .................................................................................................................................. 12
Early Strategy and launch ............................................................................................................. 12
Marketing Strategy – Exploring Value Creation Opportunities .................................................... 13
Marketing strategy – Company Analysis Details .......................................................................... 13
Marketing Strategy – Choosing Value .......................................................................................... 14
Marketing Strategy – Creating, Delivering, Communicating and Capturing Value ...................... 17
Hypothesis Formulation ........................................................................................................................ 18
Hypothesis I ...................................................................................................................................... 18
Hypothesis II ..................................................................................................................................... 19
Hypothesis III .................................................................................................................................... 19
Stage II Research ................................................................................................................................... 19
Depth Interviews .............................................................................................................................. 19
Overview from Consumer Interviews ............................................................................................... 19
Product Values – An A-C-V Ladder .................................................................................................... 24
Consumer Values – Onion Diagram .................................................................................................. 25
Quantitative Analysis - Survey .......................................................................................................... 27
Survey Design ................................................................................................................................ 27
Interpretation of Results – Perceptual Map ................................................................................. 27
Result of Survey/ Test of Hypothesis .................................................................................................... 29
Hypothesis I: First Mover Advantage ................................................................................................ 29
Hypothesis II: Availability Advantage................................................................................................ 30
Hypothesis III: Health and Safety Advantage.................................................................................... 31
Synthesis of Results and Recommendation for Marketing Strategy .................................................... 32
Why not ethnic Chinese Noodles: .................................................................................................... 32
Can yippee be threat to Maggi’s market share: ............................................................................... 32
Our Recommendations: .................................................................................................................... 33
Improving the dal atta variant: ..................................................................................................... 34
Section D, Group 5 Page 3
Appendix I ............................................................................................................................................. 36
Depth Interviews .............................................................................................................................. 36
Interviewee 1 ................................................................................................................................ 36
Interviewee 2 ................................................................................................................................ 40
Interviewee 3 ................................................................................................................................ 45
Interviewee 4 ................................................................................................................................ 48
Interviewee 5 ................................................................................................................................ 51
Interviewee 6 ................................................................................................................................ 53
Point of Sale Interview - Excerpts ..................................................................................................... 55
Company Interview ........................................................................................................................... 61
Appendix II ............................................................................................................................................ 63
Survey Results: (Excluding telephonic) ............................................................................................. 63
Section D, Group 5 Page 4
Executive Summary
Maggi has dominated the Indian noodles market for a long time and still continue to
hold more than 80% of market share. This report presents a detailed market
analysis of Maggi and its competitors. Through this report we have tried to answer
few of the questions as to how Maggi achieved and continues to sustain the role of
a market leader since a long time. We also carried out many detailed interviews of
noodles consumers and tried find out how Maggi is perceived by consumers. This
report presents a detailed analysis of potential threats that Maggi is currently facing
or can face in the coming future. We have sorted out some of the weakness in the
noodles market and how Maggi can use them as an opportunity to target or further
influence its customers. We tried to find out whether first mover is the only
advantage that Maggi has or is it something else. In the later section of this report,
we have suggested some recommendations that can be used by Maggi as an action
plan against competitors who are aggressively trying to acquire Maggi‘s market
share.
Indian Noodles Market
Instant noodles have been around for over half a century, highly popular in Asian
countries like China They are believed to have been invented by Momofuku Ando,
the founder of Nissin Food Products in 1958 in Japan.
In the traditional Indian society of the 1980‘s, however, the concept of ready-to-eat
food was alien! People were skeptical as well as hesitant to experiment with any
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packed and the so-called processed food meant to be consumed by their children.
MAGGIE came up with its product of the 2-minute (ready-to-eat) instant noodles in
those conservative Indian markets of the 1983. Today, however it has grown into
the most popular and sought after Indian instant noodles brand. With the growing
popularity of these ‗instant noodles‘ among the burgeoning middle class of India,
you'd expect plenty of action in the noodles market. Today, Noodles are no longer
considered as a processed food; it has become mainstream, a choice rather than a
last alternative and has come to be accepted as a part of the regular household
menu. Today it is consumed by everyone; right from kids and teens to young adults
and retirees.
Today, India‘s noodles market is growing rapidly & is estimated at over INR 3,000
crore in annual sales. It includes pasta, vermicelli and instant noodles. It is growing
at 20% per annum. And hence all the big FMCG players in India are targeting a
piece of this share.
Current Market Scenario
Nestle is the market leader with 58.3% market share in the overall category and
over 80% in the pure noodles category. Nestlé‘s Maggi has been synonymous with
noodles.
But over the last couple of years it has been losing market share on a monthly basis
to new entrants like ITC's Sunfeast Yippee, GlaxoSmithKline's (GSK) Horlicks
Foodles, Hindustan Unilever's (HUL) Knorr Soupy noodles, Big Bazaar's Tasty Treat,
Top Ramen and several other smaller players. Maggi‘s share of the noodle market
on a pan India basis has slipped from over 90% to around 85% in a matter of years.
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Its instant noodles market share has dropped off across all parts of India at the
same time.
Nestle Maggi Products
Maggi has been market leader in the noodle‘s segment in India and has recorded
the highest sales in this market. It took several years and lots of money and
resources for nestle to establish its noodles brand in India. The basic problem the
brand faced was the understanding the psychographics of its target segment and
hence the noodles faced a lot of problem in promoting sales. Instant noodles have
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been around for over half a century on the global menu card. In India, in the era of
conservative and traditional Indian food consumption of the early 80s; the concept
of ‗ready-to-cook‘ food was alien to the Indian market. People were skeptical to
experiment with food meant for their children. Nestle was the one to introduce this
market to India. It was made popular by Nestle, which introduced its product here
under the brand name "Maggi" in 1983.
a. MAGGI 2-MINUTE Noodles:
Now available in many delectable flavors like Masala, Chicken, Tricky Tomato,
Thrilling Curry & Romantic Capsicum.
b. MAGGI Vegetable Atta Noodles:
Healthy- more fiber, real vegetables
Provides dietary fiber equal to 3 prepared rotis
Positive market response from health conscious market segment; although
many people doubt the quantity of aata and find the use of veg as a
gimmick!!
c. MAGGI Multigrainz:
Inspiration for product comes from the growing consumer preference for a
healthy lifestyle
Source of protein, calcium and fiber
Very low sales, taste is what bothers majority of consumers
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d. MAGGI Cuppa Mania
Carry on the go
Fits with todays rushed lifestyle
Not a very encouraging consumer response
e. MAGGI – Rice noodles & MAGGI – Dal Atta noodles
A market failure because of a high price compared to other MAGGI products.
Many consumers also hated the ‗taste‘.
Competitors
Top Ramen
Top Ramen - ‗Don‘t be a noodle, be a smoodle‘ was the ad that brought Top
Ramen into the Indian market.
It was launched in 1991
The brand‘s focus on ‗health‘ and ‗energy‘ in particular is apparent with ‗Saina
Nehwal‘ as its brand ambassador.
Variety: masala, atta, chicken
Although cheaply priced, failed in the Indian market, MAGGI preferred by a
majority of Indians over TopRamen
Lack of availability and market penetration are the other two major issues for
its failure
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Horlicks FOODLES
A potential threat
Although lack of consumer awareness, people are appreciating the health
benefits offered by it.
Many consumers labeling it as a ‗perfect replacement for MAGGI‘
Notched up 2.5 per cent market share
Packaging (FOODLES) is at par with any good brand.
In addition to mentioning the ingredients and price it gives Four Horlicks
Assurance:
Fortified with Iron and Calcium
With 9 vital vitamins
No Artificial colors
No Added preservatives.
Knorr Soupy Noodles
Knorr managed to grab a market share of only 2.6% in a span of two years
HUL is set to launch Knorr Soupy Noodles in a completely new avatar by
December 2012 with a thorough overhaul — revisiting the packaging, taste
and pricing.
ITC’s Sun feast Yippee
Launched Sep 2010
Classic Masala
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Magic Masala
Targeting MAGGI with BENEFIT positioning: Comes in round shape; no
breaking (like Maggi); resulting in long noodles
Advantage: deeper penetration with already well established, penetrative
distribution channel of ITC.
Ching’s Secret Noodles
A brand for authentic Chinese food ingredients
Offering a range of sauces, soups and noodles
Easy-to-follow recipes
Wai Wai, Smith & Jones, Ching's secrets, Tai Pai Noodles & NE
Time noodles
Popular new brand of instant noodles in India
Gaining momentum in North Eastern states, Sikkim and west Bengal.
Research Premise and Methodology
Seeing that Nestle Maggi enjoys such a substantial market share the question which
obviously comes to mind is the reason behind it. Also lately, Maggi is showing few
signs of faltering, launching new variants one of the newer ones is Maggi Masala
Damdaar and pulling out all stops to cement itself in the consumer mind space. In
2012, for instance, it signed on tinsel town superstar Amitabh Bachchan as brand
ambassador. Maggi is growing consumption by upsizing packs with various combo &
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multi packs.Through our research, we sought to understand Maggi‘s current brand
perception among the consumers from different age groups. Further we analysed
the success of their current strategy on the barometer of brand perception and
identify any gaps. Finally, we hoped to provide some insights and recommendations
on the way forward.
A preliminary analysis of Maggi‘s current strategy and brand perception was carried
out based on qualitative analysis of depth interviews. Based on this a SWOT analysis
was performed based on different marketing techniques.
In the second phase again, depth interviews of consumers from all the age groups
were conducted to understand their needs as a consumer and to specifically identify
their perception of Maggi with respect to its competitors. Based on the results of
these analyses, a detailed online questionnaire was prepared to gauge the brand
perception across various attributes. Comprehensive quantitative analysis was
performed on the results of the survey to understand the current competitive
position and potential for the future.
Preliminary Research
Based on qualitative analysis of interviews of
a. Maggi Users
b. Nestle Maggi Employees
c. Non Maggi Users &
d. People who have shifted from Maggi to its competitors
We arrived at the following analysis:
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Maggi Strategy
The needs that the product is trying to address are very explicit. It is a tasty snack
which satisfies hunger and takes very less time and efforts for preparation. People
feel like eating Maggi because it satisfies hunger and tastes superb.
Early Strategy and launch
In India it was launched in 1980s by Nestle group of companies. Maggi has faced lot
of hurdles in its journey in India. The basic problem the brand faced was the Indian
psyche. i.e Indians used to be conservative about the food habits so noodles faced a
lot of problem in promoting sales.
Initially nestle tried to position the Noodles in the platform of convenience targeting
the working women. However, the sales of Maggi was not picking up despite of
heavy Media Advertising. To overcome this 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. so they came up with Maggi- 2 minute noodles
with price of Rs. 2.10 with a close of 100% margin. 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. They promoted the product innovatively like
Distributing free samples, giving gifts on return of empty packets.
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Marketing Strategy – Exploring Value Creation Opportunities
Marketing strategy – Company Analysis Details
SWOT Analysis:
Customers
•Noodles Industry has a wide range of customers ranging from children (<16 years) to youth and adults (< 35 years).
•Primary Target consumers for Maggi noodles are Kids in the age group of 4-16 years, attracted to the product because of its taste. Youth also like eating Maggi because they like its taste and don’t like putting much effort to prepare food. Working Professionals value the product mainly because of its ease of preparation, taste and time factor.
Company
•Brand image
•Availability
•Low price
•Nestle coming up with health focused variants of Maggi (vegetable and daal atta noodles) to target health conscious people and to further increase its market share.
Competitors
•HUL Knorr combines noodles with soups and soups are generally considered to be healthy. GSK, with its Horlicks extension has launched Foodles, which is a multi grain noodle, pegged as healthier alternative. Besides Knorr and Foodles, Maggi is also competing with Top Ramen, ITC Sunfeast Pasta, Wai Wai and 2 PM in corresponding categories of products and variants.
Collaborators
•Nestle has a very strong distribution network which has made Maggi noodles available in several outlets that comprise of grocers, supermarkets and convenience stores.
Context
•The urban Indian is used to having his dinner late from around 8:30 pm to as late as 11 pm. Hence a convenient snack between lunch and dinner is an often exercised. In rural areas, lower priced and small quantity packs stimulate demand. Many busy working individuals don’t want to spend much time in cooking food and want something that is easy to make and tastes good.
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Marketing Strategy – Choosing Value
Segmentation, Targeting and Positioning
Segmentation
Market Segmentation divides the heterogeneous market into homogenous groups of
customers who share a similar set of needs/wants and could be satisfied by specific
products. Maggi Brand has segmented the market on the basis of Age, lifestyle and
habits of urban families.
Strengths:
Market leader in noodles category
High brand loyalty
Excellent advertising and visibility
Good product distribution and availability
Lots of flavors and varieties available
Emotional connect with consumer
Weaknesses:
Health Concerns of people as it is made of maida
Constant product features since inception
Media generated news about health concerns
Opportunities:
Untapped Rural Market
Increase in Working Youth Population
Increasing trend of convenience food and consumption
Rapid economic growth and increasing disposable income
Newer Tastes
Threats:
Competition
Price wars with competitors
Regional compititors
Foreign Competitors
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Children
Children play a significant role in decision making and purchase choices of just
about anything ranging from food items to beverages to chocolates. As
consumers, children know exactly what they want and do not experiment too
much with flavor or color.
Teenagers
On the brink of adulthood, teenagers like to emphasize and express themselves
in a manner that catches attention. They have experimental with their food with
a preference towards innovative offerings but form strong opinions which they
carry forward in life. They are also predisposed towards snack items as they tend
to feel hungry between traditional meals. They have a lot of say about the food
that they want to consume with limited parental control
College Students
A rise in the number of colleges and institutions of higher learning both
government owned and privately financed has enabled a larger number of youth
to graduate from their portals. This population grew since 2000 but is set to
stagnate in the forecast period with couples actually postponing the child bearing
decision and some even rejecting the idea of having on eat all. This age group
has taken up to snacking as a way of life as they keep missing regular meals due
to erratic schedules. They have longer waking hours and due to this the
traditional three meals does not suffice with the need for filling snacks.
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Middle Aged Adults
These middle aged men have strict preferences over food and they generally
stick to their choices. They experiment less and go for products that will enhance
their social status. The women in this age group are ones who the primarily buy
food items for the entire household though their choices are shaped by the
preferences of the household members. The women in this segment play an
important role as most of the choices of food items have to pass their scrutiny
before it is consumed in the household
Pensioners
In the 1950s and 1960s, government jobs were among the few acceptable job
occupations for people from respectable households. Changing technology and
globalization have changed that with unconventional income opportunities now
presenting themselves to Indians. Some pensioners have sought and enjoyed
success in information technology-related endeavors whilst others have put their
considerable English language skills to good use in service industries. Pensioners
have been the hardest hit section of the population. With declining interest rates,
they have had to play a more active role in financial management
Targeting:
Market Targeting refers to evaluating and deciding from amongst the various
alternatives, which segment can be satisfied best by the company. The Maggi Brand
have mainly targeted the Kids, Youth, Office Goers and Working Men & Woman
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which falls into the category of ―convenience-savvy time misers‖ who would like to
get something instant and be over with it quickly.
Positioning:
Market Positioning is the act of designing the company‘s offerings and image to
occupy a distinctive place in the minds of the target market. The goal of positioning
is to locate the brand in the minds of consumers to maximize the potential benefit to
the firm. Maggi has positioned itself in the SNACKS (Between two meals) category
and not in the meal category since Indians do not consider noodles as a proper food
item. Therefore Maggi have developed Its brand image of instant food products with
positioning statements such as ―2 minutes noodles ―and ―Easy to cook, good to eat‖.
And also Maggi had to deal with the negative perception of Maggi has of being
unhealthy in an increasingly health conscious market, a major threat in the current
scenario. Both these problems were tackled by positioning Maggi as a snack with
nutritional value with the launch of ―Veg Atta Noodles‖ and ―Dal Atta Noodles‖.
Marketing Strategy – Creating, Delivering, Communicating and
Capturing Value
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Hypothesis Formulation
Based on our qualitative analysis and consumer interviews we came up with some
hypothesis:
Hypothesis I
One of the main reasons for Maggi‘s strong market share can be attributed to its
first mover advantage.
Because most of the consumers have grown up eating Maggi they have a strong
loyalty towards the brand and the word Maggi has almost become synonymous with
Noodles.
• Anytime snack to satisfy hunger
• Good to eat (taste),
• Fast to cook
• Product Weakness: Maggi is made up of Maida which is not considered to be healthy.
Product
• Maggi is using low cost leadership strategy to capture and retain a large market share.
Price
• Rural market and Urban Market
• Nestle has an extensive distribution channel. Maggi is sold through several outlets that comprise of grocers, supermarkets and convenience stores.
Place
• Currently promotions through
• TV advertisements
• Awareness Campaigns
• Promotional campaigns in schools
• Free samples on buying some other products
Promotion
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Hypothesis II
Another important reason for Maggi‘s strong market share is its availability.
Hypothesis III
People perceive it to be safer or healthier than other brands.
Stage II Research
Depth Interviews
Depth interviews were performed on various consumers across the various
segments:
a. Bachelors - Teenagers
b. Home makers – Working professionals
c. Point of sales interviews
Overview from Consumer Interviews
Detailed interviews of 10 consumers of instant noodles belonging to different age
groups, gender and user were taken. Questions were asked which could help us
interpret their views about Maggi and its competitors. These interviews also helped
us to validate the secondary data about Maggi. Refer to appendix for detailed
transcripts of the interviews.
From the interviews we found that:
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Maggi has been extremely popular among the 1990 generation and many youth
belonging to that group has continued to eat Maggi. So Maggi has a lot of
customers that are loyal to the brand.
Most of the consumers that we interviewed consumed Maggi twice or thrice a
week.
Maggi is consumed by people belonging to almost all age groups.
All the people whom we interviewed are aware about Maggi but only some are
aware about other brands.
Almost all People responded that the main reason why they buy Maggi/noodles is
because of the convenience (fast and easy to cook) and taste. Other attributes
are an added advantage.
One customer told that he used to like Maggi during his childhood days and still
eats it and this habit is being passed down to next generation. So Brand Image
of Maggi is very strong. We can conclude that there are some consumers who
have been eating Maggi for a long time and continue to eat that.
Some customers eat a different brand of noodles but they call it Maggi.
Most consumers came to know about Maggi either from TV advertisements or
from their relatives or friends. Competitors are also trying to market their product
through TV ads so the advantage that Maggi has over others is its customer base
who provide word of mouth. As new brands gain attention, because some people
are willing to try out new variations but it will take some time before a new
better product can take over Maggi‘s market share.
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Secondary data suggests that children are the major influencer to their parents
to buy noodles. But from primary data it seems that 50% of the times parents
are the ones who suggested Maggi among other brands of noodles to their
children because it is a recognized brand.
Among the consumers that we interviewed, few of them had tried different
brands but ultimately reverted back to Maggi because they are used to the taste
that Maggi offers. Some people are not at all interested to try anything except
Maggi.
Primary data suggests that most of consumers of noodles would prefer to eat
something traditional if in case Maggi was not there. From this it seems that
other brands don‘t have much impact in the minds of people in noodles industry.
One consumer said that Maggi was too much spicy and likes Sunfeast Yippe
noodles which she considers healthy as compared to Maggi. Health does seem to
be a factor affecting choice of some consumers.
We also found some consumers concerned about consuming maida. From
primary data we concluded that some people might be concerned with too much
consumption of spicy product.
Some people said that they eat Maggi mainly because of its taste and other
attributes are an added advantage. Most of the people who tried health focused
brands like foodles have told that they don‘t taste better than Maggi. Even the
health focused variations of Maggi are not very successful. Some people bought
these products because they wanted to try out the new product available in
market. So it appears that health focused brands like foodles won‘t succeed in
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the market until they offer a taste that is better than Maggi. One interviewee
said that health focused variations of noodles don’t taste like proper
vegetables. This could be an area that a new product can focus. We conclude
that it is necessary for a noodles brand to focus more on taste but keeping some
level of health benefits. Maggi has already positioned themselves well in both
these dimensions along with low cost.
From the interviews we found that some find Maggi to be better in taste while
others finds all brands to have the same taste. But since Maggi is a well-
recognized brand, people prefer Maggi over others. Most of the people are
satisfied with Maggi and are not interested to try out other brands. Some of the
people whom we interviewed are interested to try out new variety for a change
but they find other brands to be similar to Maggi.
From one interview we found that attractive offers with noodles like stickers can
attract kids and encourage parents to at least try noodles from that brand. Giving
only the offers will not be sufficient to attract Maggi‘s customers, competitors
also need to come up with a product better in taste as well as health than Maggi
and with low price. Any product that is comparable to Maggi would not succeed
in the market for long through such offers because Maggi has a first mover
advantage.
One person said that ―if a person really is health conscious then he/she will
probably go for fruits and vegetables and not noodles. People can also add
vegetables or egg in Maggi to make it a healthier snack.‖
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Some of the people whom we interviewed said that they will switch to some
other brand if it can offer them same taste but better health. From secondary
data we found that one respondent commented:
―Once I get the Maggie like taste and additional fortified Vitamins
and Mineral at a much less price of Rs 10 against Rs 15 for
almost same quantity of Maggie, why I shall go for Maggie ? ―
Ethnic Chinese noodles like hakka noodles are still perceived better than Maggi in
terms of taste and health but it takes time to cook them and that‘s why people
consume them less as compared to Maggi.
We also collected information from IIM Bangalore mess about Maggi‘s
consumption and why specifically Maggi. We found that Maggi is ordered in the
mess because students like it. Mess also has a collaboration with wholesalers
who supplies them Maggi so other brands are not looked upon. From this we
conclude that there must be some other institutes also which orders Maggi in
bulk to serve it in their mess as snacks. Some students consume Maggi in mess
even if they don‘t like it very much because it is being served there. So we can
say that distribution channel of Maggi is very strong and is one of the major
factor for Maggi‘s leading market share.
During the interviews, some of the people said “They have grown up eating
Maggi‖. The flavor and the taste that was introduced to Indian psyche for the first
time made Maggi to remain associated with mentalities of the people. Yippee tried
to position in a different manner by promoting it as long noodles to get benefit over
Maggi, still it could not get any advantage as it could not give the flavor and taste
that Maggi created in the minds of Indians.
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From the interviews we also concluded that Maggi no doubt has a first mover
advantage, but that‘s not the only advantage. Many perceive Maggi is better than its
competitors in terms of taste. Maggi has widespread availability and awareness. It
has reasonable health benefits and at low cost. People are extremely satisfied with
the product and most of them are not interested to try out and new variation of
noodles that comes up. It has a good loyal customer base which is difficult to target.
But it is still possible to challenge Maggi if competitors can come up with some
product which is comparable to Maggi in all attributes but better in any one of the
major attribute like taste and health. Competitors can also use attractive gift offers
to encourage consumers to try their product.
1. Points of Parity and Points of Difference
We further concluded from the interviews that the minimum Points of Parity (POP)
that consumers expect in any noodle brand is taste and convenience to cook.
Availability and health can be considered as the points of difference (POD). The
Maggi Brand has also differentiated its brand image from its competitors in terms of
taste, flavors and packaging.
Product Values – An A-C-V Ladder
The insights gained from depth interviews were used to map main features of Magi
noodles to its core values using the multi-level Attributes-Consequences-Values
Laddering technique. We have grouped together attributes listed at the lowest level
on the basis of common underlying needs to form the second level. We further
linked Reinforcing items at intermediate levels on the chains to converge on the
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highest level. This analysis finally revealed the central benefits offered by Maggi
noodles to be ‗Spicy Indian Taste’ and ‗Steaming Hot Instant Food.‘
Consumer Values – Onion Diagram
After finding the core benefit of Maggi noodles, we charted the value system at the
heart of the customers under study. We drew a mesh of symbolisms characteristic of
the typical reader and linked them to rituals and role models that are representative
of groups of people. By combining these with the evolving needs of the consumer
and interpreting them together, we discovered that the value central to Maggi
noodles was ―Indian Roots and Western Appeal‖.
Don’t
Indian Roots & Western appeal
On the Go
Aspiring
Tasty Fun
LovingKids
Urban
Newly wed
I want to impress my in
laws
Romantic Getaways
Seeks variety
Hang out with
friends
What movie is playing in PVR?
I like fast food
Fixed pocket money masti
The Onion diagram shows the various facets of the customers of Maggi noodles. On
the one hand, they are kids seeking instant yummy food from their mothers .These
kids would like to share their noodles with their friends in their homes as well as in
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summer camps. On the other hand, there are the mothers who want to make their
children eat some vegetables and protein rich food but want to make it fast and also
to suit the kid‘s taste. Students would like to have a good instant hot snack at mid
night to relieve their pangs of hunger while studying for exams. But they want the
snack to not hurt their purse because they would like to use some portion of their
fixed pocket money on movies and fads also. Then we have the urban bahu who is
new to cooking and wants to satisfy her in laws with a good food which is easy to
cook and can‘t go wrong and is yummy at the same time. We have working couples
who share responsibilities of home and office together. The father wants to make
something fast and tasty for his daughter as a hot snack because her wife is away
from home on an official trip. Then we have working singles consumers who want to
impress their sweet hearts by cooking a romantic meal even when they don‘t know
how to cook. These overlapping needs and desires build a complex but real-life
picture of rituals shaping the values of the young citizens of India.
By comparing the Hofstede model with the ACV Ladder, we find that Maggi noodles
satisfy the core values and desires of most of its existing customers. It is ‗FAST TO
COOK & GOOD TO EAT ‗. However, there is still reason to believe that it could do
better among the variety seeking kids of this generation. In the emerging India,
nuclear families are increasing and kids generally influence decision making of the
urban nuclear families. We have seen during our surveys that the kids have
influenced their parents to shift to other brands because the competitor gives them
stickers and other goodies free or just for the sake of trying a new brand. As such,
their lack of brand loyalty might pose a threat for Maggi noodles and opportunity for
competitors to exploit.
Section D, Group 5 Page 27
Quantitative Analysis - Survey
Survey Design
A detailed questionnaire was developed to test consumer perceptions on the various
attributes mentioned below.
Brand Association
Brand Awareness
Brand Loyalty
Health concerns about the brand
Core competencies of the brand
Weakness of the brand(areas of improvement)
Competitors of the brand
Emotional connection
Accessibility and availability
Apart from this respondents were called up and their responses were recorded to
obtain data from people influencing buying decision and actually buying the product.
Interpretation of Results – Perceptual Map
A sample survey response result analysis obtained:
Which brand comes to your mind first when you hear the word noodles ?
52 91%
0 0%
1 2%
4 7%
0 0%
Section D, Group 5 Page 28
The results of the survey were analyzed further to obtain a perceptual map along
each of the attribute vectors:
Perceptual Map
As seen above, the two dimensions emerging from the perceptual map together
explain about 84% of the variation in the preferences. Hence there is not much
information that would be gained by adding another dimension to the perceptual
map. It is observed that the horizontal axis, which explains about 63% of the
variation, is positioned very closely to the attributes availability and generational
(first mover advantage). Hence it can be inferred that these attributes together
explain a major part of the perception and position of a noodle brand. And it can be
seen that in these two fronts Maggi is the undisputed champion.
Maggi Top Ramen
Chings
Sunfeast Yippee
Horlicks Foodles
Value for money
Variety
Generational
Taste
Quality
Health
Ease of Preparation
Availability Axi
s 2
- E
xpla
ine
d v
aria
nce
= 2
1%
Axis 1 - Explained variance = 63%
Perceptual Map - Noodles
Section D, Group 5 Page 29
In contrast, health is observed to lie exactly opposite to these attributes which
would signify that in the perception of the general people instant noodles are not
really associated to health. The vertical axis is less important in explaining the
variation as compared to the horizontal axis. Hence, we can conclude that variety,
taste, ease of cooking is comparatively less important. Also, the only explanation for
quality and value for money to be oppositely placed can be that value for money
could have been misconstrued as less costly.
Result of Survey/ Test of Hypothesis
Hypothesis I: First Mover Advantage
The following table summarises the various ratings given to the various noodles
brands based on Generational values – (First mover Advantage)
Brand Rating
Maggi 4.6
Top Ramen 3.8
Chings 2.6
Sunfeast Yippee 3
Horlicks Foodles 3
Average 3.4
Average rating for Maggi is 4.6 whereas average rating is 3.4
Test of Hypothesis
Test whether rating for Maggi is significantly higher than that of its competitors:
Ho : X1<=X2 Vs H1: X1>X2
Test Statistic: (n1 = n2; n1+n2>30); Z= (X1-X2)/Sqrt((sd1^2/n1)+(sd2^2/n2))
Section D, Group 5 Page 30
At Alpha = 5%, Zcritical = 1.645; And Zcalc > Zcritical;
We reject the null hypothesis that average rating of Maggi is same as overall.
Hypothesis II: Availability Advantage
The following table summarises the various ratings given to the various noodles
brands based on ease of availability:
Brand Rating
Maggi 4.5
Top Ramen 3.0
Chings 2.4
Sunfeast Yippee 3.4
Horlicks Foodles 3
Average 3.26
Average rating for Maggi is 4.5 whereas average rating is 3.26
Test of Hypothesis
Test whether rating for Maggi is significantly higher than that of its competitors:
Ho : X1<=X2 Vs H1: X1>X2
Test Statistic: (n1 = n2; n1+n2>30); Z= (X1-X2)/Sqrt((sd1^2/n1)+(sd2^2/n2))
At Alpha = 5%, Zcritical = 1.645; And Zcalc > Zcritical;
We reject the null hypothesis that Maggi is rated equally in the availability aspect.
Section D, Group 5 Page 31
Hypothesis III: Health and Safety Advantage
The following table summarises the various ratings given to the various noodles
brands based on health advantage:
Brand Rating
Maggi 3.4
Top Ramen 3.3
Chings 3.4
Sunfeast Yippee 3.6
Horlicks Foodles 4.1
Average 3.56
Average rating for Maggi is 3.4 whereas overall average rating is 3.56
Test of Hypothesis
Test whether rating for Maggi is significantly higher than that of its competitors:
Ho : X1<=X2 Vs H1: X1>X2
Test Statistic: (n1 = n2; n1+n2>30); Z= (X1-X2)/Sqrt((sd1^2/n1)+(sd2^2/n2))
At Alpha = 5%, Zcritical = 1.645; And Zcalc < Zcritical;
We cannot reject the null hypothesis that average rating of Maggi is same as overall.
Section D, Group 5 Page 32
Synthesis of Results and Recommendation for Marketing Strategy
Based on our marketing surveys and our analysis, we realised that Maggi is doing
well among its previous customers (the ones who used instant noodles when Maggi
was the only one available) who continue to be fiercely loyal to Maggi. Actually, the
customers who were kids when Maggi was introduced, still remember Maggi as a
source of good moments and hence they are loyal to Maggi and these form a
substantiate base of Maggi‘s customers and they also helped increase Maggi share
over years by spreading their opinion.
Why not ethnic Chinese Noodles:
Though noodles concept originated from china, Thai countries, they failed to capture
market share in instant noodles segment in India. The main reason for this is, these
Chinese brands failed to create a local taste and flavor that matches Indian psyche.
Form our interviews we found that customers are looking for a product which
inherently gives Indian kind of taste like masala. The masala blend in Chinese
products is completely different from Maggi and it is not connecting well with Indian
customers. For example ―Nissin‘s topramen‖ was launched in 1988 in India , till
today its share limited to single digit.
Can yippee be threat to Maggi’s market share:
Though instant noodle segment is growing at 20 percent per annum, Maggi‘s share
of market has gone to 80 percent while competitors like ITC‘s Sunfeast Yippee
(which was introduced in 2010) have managed to capture double digit share of the
instant noodle market. This is because Sunfeast Yippee has managed to capture the
Section D, Group 5 Page 33
key decision influencers of urban and semi urban families – kids. In our survey, we
found that Maggi is losing share to Sunfeast Yippee because Sunfeast has managed
to attract kids by its bright coloured packages with cartoons, cool brand image and
offering stickers free for kids. Current generation kids are spoilt for choice and
Sunfeast exactly targets them by offering the kids a ‗Choice‘ which makes it cool.
Besides, the brand image Sunfeast also has made the noodles taste yummy (if not
yummier than Maggi) owing to the Sunfeast noodles recipe, inspired by the Master
Chefs of ITC hotels. Also ITC has a strong brand name of Sunfeast which has
positioned itself in the minds of young consumers (kids and college going students)
as a energetic and pleasing brand with innovative products in biscuits category like
Dark Fantasy, Dark Fantasy Choco Fills, Dream Cream biscuits. If Maggi, does not
continue wooing the kids and the younger generation, it might lose its share even
more to Sunfeast despite the growing trend in noodle market.
Our Recommendations:
Over the years Maggi has changed itself from being a kid‘s instant food choice to a
instant food liked by all. It is good to capture the growing market but Maggi should
not also lose its focus on kids too.
To stop losing and to maintain and further grow the share of Maggi noodles among
kids segment, we recommend Maggi noodles some of the solutions:
1) Add some cartoons on Maggi‘s packets to make it look more bright and
colourful to attract kids
Section D, Group 5 Page 34
2) Give some stickers or tattoos(representing characters in kids movies or
books) free for kids during the times when good movies or books are release
(Use collaborators from Indian movies for mutual promotion benefits)
3) Release a variant targeting kids
4) Conduct fun competitions for kids so that they remember Maggi when they
think of fun
Instant noodles segment of Maggi is the market leader in its segment. Available in
4flavours, the Masala flavour is the hot favourite by a huge margin followed by
Maggi Vegetable Atta and Tomato flavour. The Maggi Dal Atta variant shows a poor
response.
Improving the dal atta variant:
Maggi Dal Atta variant ranks really low on taste as suggested by the our Marketing
Research. The existing Sambar taste doesn‘t go too well with consumers even from
the south Indian market. For which we plan to replace the existing Tastemaker with
a Spicier Tastemaker to go with the traditional Spicy Indian taste
Maggi also needs to work on its product because most of the customers who have
left Maggi for other noodles, have done because the noodles lump after cooking
after sometime whereas its competitor Sunfeast advertises that Sun feast Yippee
noodles do not lump even 30 minutes after cooking, which targets Maggie‘s
weakness among older customers who leave Maggi for Sunfeast Yippee and others.
If Maggi can work on these minor weaknesses and communicate the benefits of
improved product to others, it can capture a much larger share among the not so
young consumers too.
Section D, Group 5 Page 35
In the end, we feel that Maggi has the capability to increase its market share
(instead of just stopping losing market share) because it has all the essential
strengths to do it. To speak of it once again, Maggi‘s distribution system is
unparalleled and Maggi was actually the one which introduced and grew a category
called instant noodles when instant noodles where unheard of in India just 30 years
ago.
Section D, Group 5 Page 36
Appendix I
Depth Interviews
Interviewee 1
Details: Anusua Banerjee
Gender: Female
Age: >40 years
Interviewer: Do you eat instant noodles? Do you like it?
Anusua: Yes, I eat instant noodles occasionally. But I am not that much fond of
instant noodles. My daughter is the one who is fond of instant noodles. Otherwise,
neither I nor my husband is that big a fan of instant noodles. But, in this fast paced
life you cannot do without it. You have to have some kind of fast and easy to cook
food available at your home.
Both me and my husband actually like the hakka noodles better which comes from
local brands. They are not that easy to cook and it is time consuming but I like the
taste. My daughter however is a fan of instant noodles. She is the one who mainly
likes instant noodles.
Interviewer: How frequently do you have instant noodles, like how many times per
week? When will you generally have it?
Anusua: Generally we have it twice or thrice a week, not more than that. Mainly,
my daughter will have it after she comes back from college. It is easy to cook and
fast. She can cook it herself. I do not need to go to the kitchen for that. So, actually
it is very convenient. She has it only when there is nothing other to eat – that is
nothing tastier. Sometimes she just wants some change from the normal food. I will
also have it when she prepares. My husband also has it. But, I think you should not
Section D, Group 5 Page 37
have it always. Sometimes for a change is OK. But, I don‘t think they are very
healthy.
If however, we are planning to have noodles on holidays and all, I will prepare hakka
noodles only. It takes a bit of more time but it is worth the effort.
Interviewer: How many different brands of noodles have you tried so far? Include
hakka noodles also or any other thing which you might have tried.
Anusua: Well, I have tried out a lot of different brands. I have had Maggi, Chings,
Yippee, Smith & Jones, Top Ramen and then Tasty treat and many other local
brands for the hakka noodles.
Apart from these I have also tried out other things like Pasta, Maccaroni etc. I like to
try out different things sometimes. It gives me a change and everyone likes that
also.
Interviewer: So, what exactly do you look for in instant noodles?
Anusua: Well, firstly it should be convenient to cook. Because that is the most
important part, like without me going into the kitchen, my daughter should be able
to prepare it without much hassle.
It should be able to be cooked very fast. It should be really 2 minutes. But most of
them are actually not.
Next, it should not be bland, that is it should be fun and it should taste different and
should come as a break from the normal tiffin. Also it should not be totally
unhealthy. Like, I know they are not healthy but it should not be bad for health.
Interviewer: Well, is there any particular brand which you like most? Which one do
you buy most among instant noodles?
Section D, Group 5 Page 38
Anusua: The most I buy is Maggi, because my daughter likes the taste and also it
has been there for long time. So, you can buy it without worrying. Also, I buy Tasty
Treat, whenever I go to Big Bazaar.
Interviewer: Is there any particular reason why you prefer Maggi over others?
Anusua: Actually, Maggi is the only instant noodles brand which is available in the
local store. It is a small store and they don‘t keep any other brands. So, I have to
buy Maggi whenever I am buying for the short term.
Other brands are mostly available in the malls only. Like Smith & Jones or Top
Ramen or Tasty treat – they are available only in big Food World type of malls.
Whenever I go to Foodworld, generally I buy Maggi and Tasty treat.
Interviewer: So, if the other brands are available in the local store, will you buy
them?
Anusua: Well, I think not. See, basically they are not available, and so I haven‘t
given much thought but now that you are asking, I think I will prefer Maggi only.
Maybe, once in a while I will try out some different brand but on an average I think
I will buy Maggi only. Because, Maggi is something which you can trust. It has been
there for a long time. You can be sure that it is safe. It may not be actually healthy
but you can rest assured that it won‘t affect you adversely.
Maggi has become the equivalent of noodles. You don‘t go the shop and tell that
give me a noodles. You always tell that give me a Maggi. It is like synonymous to
noodles.
Interviewer: Do you feel that it is different in taste from other noodles?
Anusua: No, to me they seem the same. There is not much difference. But my
daughter never complains about Maggi or asks for something else specifically, so I
am OK with it. I think all of them taste more or less same only, not much difference.
Section D, Group 5 Page 39
Interviewer: Are you aware that there are various varieties of noodles available
like Atta Veg Noodles, Chicken Masala Noodles etc? Have you tried them? Which one
do you like best?
Anusua: Well, I think I have tried all varieties. At least, most of them. They are OK
once in a while but I think overall, the plain Masala flavour is the best. It‘s like I
don‘t have a particular inclination to any of them, just that I have been having the
Masala flavour and I like it and others are not that much special.
Interviewer: You mentioned that you would rather prefer Hakka Noodles over
Maggi or instant noodles. Any reason?
Anusua: Well, if you are cooking the Hakka noodle, you can add lot of vegetables in
it, you can prepare your own gravy, and basically it is a full-fledged dish. It tastes a
lot better also, but obviously it is time consuming. In instant noodles, you get the
same flavour of masala and soup.
Interviewer: But, nowadays, Maggi and other brands have also come up with
Vegetable Atta noodles and others. Have you tried them?
Anusua: Well, I have tried them but they don‘t taste the same as proper
vegetables. Besides, you can prepare proper gravy as in restaurants. These things
will never go with instant noodles.
Interviewer: In your mind what are the top 3 brands of noodles? Can you just
compare them?
Anusua: Well, for me the top 3 brands will be Maggi, Tasty Treat and Top Ramen.
Maggi is the best when it comes to availability, also you can be sure that it is safe
and it is the trust which comes into the picture. Price wise also, it is reasonable.
Although whenever I go to Food Bazaar, I will buy Tasty Treat because it is available
in bigger packs and it is cheaper than Maggi and tastes more or less same. However,
Section D, Group 5 Page 40
most of the time we get smaller packs only from local stores and I would prefer
Maggi, because my daughter likes the Maggi masala flavour and we have also sort
of grown used to it.
Top Ramen is good for a change. Otherwise, all of them can be cooked very easily
and it is convenient.
So, not as many differentiating factor as such. Just that, Maggi is available and I
know that it is good.
Interviewer: What will you prefer supposing that Maggi is not available?
Anusua: Well, if Maggi is not available, I would prefer readymade Pasta or
Macaroni. They are also OK. Otherwise soups are also OK. Nowadays Knorr soups
are really good. I think the main point is easy to cook and it should be tasty. They
should not be staple diet as is the case with many bachelors, you can have it once in
a while.
Interviewer: Well, Anasua, thank you very much for your time. We have been
able to gain a lot of insight into the consumer minds with your interview.
Interviewee 2
Details: Sudhir Padala
Gender: Male
Age: 30 years
Interviewer: Do you eat instant noodles? Do you like it?
Sudhir: Yes, I eat instant noodles regularly. I like instant noodles. I stay alone and
they offer me mom‘s food taste at home.
Section D, Group 5 Page 41
I come tired from office and feel hungry at night. I have my lunch and breakfast at
office. On weekends and during weekday evenings, I mostly eat noodles. I add eggs
or paneer or cabbage or cheese to my noodles sometimes. Then it becomes more
nutritious.
I actually like the hakka noodles which are available road side, but I am afraid they
do not cook them in healthy oil. Besides, they are not that easy to cook and are time
consuming to make. That‘s why I have instant noodles.
Interviewer: How frequently do you have instant noodles, like how many times per
week? When will you generally have it?
Sudhir: I have it almost every day. I have it at night time for dinner during
weekdays and for lunch and dinner during weekends
It is easy to cook and fast. I can actually cook them in electric rice cooker. I need
not have a stove for that. I cook in my electric kettle also sometimes.
Interviewer: How many different brands of noodles have you tried so far? Include
hakka noodles also or any other thing which you might have tried. Can you compare
them?
Sudhir: Well, I have tried out a lot of different brands. I have had Maggi, Chings,
Yippee, Smith & Jones, Top Ramen and then Tasty treat and many other local
brands for the hakka noodles.
I like Top Ramen‘s taste, but they are not always available and Top Ramen does not
have atta noodles and does not give many offers. Maggi tastes alright, but it
becomes sticky sometimes. They are good at marketing. That‘s why it is available at
lesser price and everywhere. Sunfeast Yippee is fine, but it looks like a kid‘s brand to
me with that colour of packaging. It somehow does not make me feel like buying it.
Hakka noodles are good but time taking, unlike instant noodles. I do not have stove
to make them. Instant noodles can be made in electric rice cooker or kettle. Koka
Section D, Group 5 Page 42
noodles come in lobster flavour which is great, but they are pricey and not found
everywhere
Interviewer: So, what exactly do you look for in instant noodles?
Sudhir: They should be easy to cook. I should be able to cook in kettle or electric
rice cooker. When I add vegetables or eggs it should blend well and the masala
should be good for this. It should give me restaurant and homemade healthy feeling
and the spicy taste should remember me of home cooked food. The price should be
reasonable and I should be given a lot of offers and discounts.
Interviewer: Well, is there any particular brand which you like most? Which one do
you buy most among instant noodles?
Sudhir: I like Top Ramen‘s taste, but they are not always available and Top Ramen
does not have atta noodles and does not give many offers. The one I buy most
among instant noodles is Maggi.
Interviewer: Is there any particular reason why you prefer Maggi over others?
Sudhir: Actually, Maggi is easily available compared to Top Ramen. Top Ramen
tastes good, has a nice texture compared to Maggi but is not easily available.
Interviewer: So, if the other brands are available in the local store, will you buy
them?
Sudhir: Well, I will buy Top Ramen but not others. Once in a while I will buy Maggi
atta noodles, but I will not buy others. Because, Maggi is something which has been
there for a long time. You can be sure that it is safe. And if they say a packet of atta
noodles is equivalent to 3 rotis, then they are really true and they will not harm you.
Section D, Group 5 Page 43
Interviewer: Do you feel that it is different in taste from other noodles?
Sudhir: No, to me they seem the same except Top Ramen which has a distinct
taste. Maggi tastes alright, but it becomes sticky sometimes. They are good at
marketing. That‘s why it is available at lesser price and everywhere.
Interviewer: Are you aware that there are various varieties of noodles available
like Atta Veg Noodles, Chicken Masala Noodles etc? Have you tried them? Which one
do you like best?
Sudhir: I have tried all varieties available in market. They are OK once in a while
but I think overall, the Top Ramen Tomato flavour is the best.
Interviewer: You mentioned that you would rather prefer Hakka Noodles over
Maggi or instant noodles. Any reason?
Sudhir: Well, if you are cooking the Hakka noodle, you can add lot of vegetables in
it, you can prepare your own gravy, and basically it is a full-fledged dish. It tastes a
lot better also, but obviously it is time consuming. In instant noodles, you get the
same flavour of masala and soup.
Interviewer: But, nowadays, Maggi and other brands have also come up with
Vegetable Atta noodles and others. Have you tried them?
Sudhir: Well, I have tried them and I actually like Maggi atta noodles only. They are
healthy and taste and contain nutrients equivalent to three rotis.
Interviewer: In your mind what are the top 3 brands of noodles? Can you just
compare them?
Sudhir: Right now I think that Maggi, Sun feast, Top Ramen are the top 3 brands.
Whenever I go to Big Bazaar, I will buy Top Ramen because it tastes better that
Maggi when I add eggs to it. However, most of the time we get smaller packs only
Section D, Group 5 Page 44
from local stores and I would prefer Maggi, because Maggi also gives some
discounts.
Maggi is good in taste and gives value for money. Otherwise, all of them can be
cooked very easily and it is convenient.
Interviewer: What will you prefer supposing that Maggi is not available?
Sudhir: Well, if Maggi is not available, I would eat boiled eggs and curd rice. I think
the main point for me is that it should be easy to cook and can be cooked without
stove and it should also give some offers..
Interviewer: Well, Sudhir, thank you very much for your time. We have been able
to gain a lot of insight into the consumer minds with your interview.
Interviewee 3
Details: Paryant Buch
Gender: Male
Age: >25 years
Interviewer: Do you eat instant noodles? Do you like it?
Paryant: Yeah i do , and i love it. The taste is pretty good not as compared to the
regular noodles, but still does justice to a sanck made in like five minutes . Another
reason i like it is it is very easy to cook and doesn't take any time at all. Even if you
take away the time factor and the ease of cooking i would still rather prefer maggi
over other noodles such as may be the chinese hakka noodles etc.
Interviewer: How frequently do you have instant noodles, like how many times per
week? When will you generally have it?
Paryant : I have it atleast twice a week during the night when i am hungry but
short of time , hence to satisfy the instant hunger at night i just order one. My
consumption of these noodles increases dramatically during submission and exam
time that is to almost every night before the exam. In my family me and my brother
both like it , we used to have it as our evening snack when I was back home.
Interviewer: How many different brands of noodles have you tried so far? Include
hakka noodles also or any other thing which you might have tried.
Paryant: I have only tried top ramen and hakka noodles other than maggi . But
taste wise i prefer maggi to both the brands mentioned above. I am not aware of
many other brands and i try to stick to maggi only most of the times. The taste is
pretty addictive and i am not aware of many other brands in the market . For me
noodles means Maggi and i would continue having it till they keep manufacturing it.
Section D, Group 5 Page 46
Interviewer: So, what exactly do you look for in instant noodles?
Paryant: The main factor that i consider when i want to consume noodles is the
need to satisfy my hunger with a tasty snack instantly. Hence i give preference to
the taste and time factor when buying my pack of instant noodles
Interviewer: Well, is there any particular brand which you like most? Which one do
you buy most among instant noodles?
Paryant: Maggi is my most preferred brand in the noodles segment. I love the taste
and how is easy and fast it is to make . It is my clear preference for an ideal night
time snack.
Interviewer: Is there any particular reason why you prefer Maggi over others?
Paryant: The best thing for me is the availability that no matter where you go you
will always find Maggi even from hill tops to deserts. It doesnt matter where i go i
am assured , even when travelling in places where the food might not suit me , i am
mostly always assured of getting a maggi over there.
Interviewer: So, if the other brands are available in the local store, will you buy
them?
Paryant: I dont think so . I love maggi , i am addicted to the taste , so as long as
they keep selling it , i will keep buying it , but may be once in a while for a change i
try out top ramen , i cant distinguish much on the taste factor , but still i prefer to
have maggi over any other brand any given day.
Interviewer: Do you feel that it is different in taste from other noodles?
Section D, Group 5 Page 47
Paryant: Not to me . There is not much difference in taste , they taste the same
more or less except in some varieties when there is some other added flavour , other
than that i feel Maggi and Top Ramen taste almost the same.
Interviewer: Are you aware that there are various varieties of noodles available like
Atta Veg Noodles, Chicken Masala Noodles etc? Have you tried them? Which one do
you like best?
Paryant: Yes i am aware of it , infact i have tried them all but still , the plain magic
masala flavour beats them hands down .There is something about the taste that i
cant explain , but it is very addictive. I have been consuming the same thing since i
was a child and i still love the taste and would still prefer Magic Masala over any
other flaovour.
Interviewer: But, nowadays, Maggi and other brands have also come up with
Vegetable Atta noodles and others. Have you tried them?
Paryant: Yeah i have tried them . But i dont like their taste as much , they are
alright sometimes to try for a different taste. I particularly don't like Vegetable Atta
Noodles that much .
Interviewer: In your mind what are the top 3 brands of noodles? Can you just
compare them?
Paryant : Comparing the three brands Maggi Top Ramen in terms of the factors
given below:
(Rating on a scale of 1 to 5 , 1being the lowest preference)
Maggi Top Ramen
Cost 4 4
Taste 5 4
Section D, Group 5 Page 48
Availability 5 4
Brand Name 5 3
Trust 5 3
Health 2 2
Interviewer: What will you prefer supposing that Maggi is not available?
Paryant: Well, if Maggi is not available, I would prefer Top Ramen Noodles. They
are alright in terms of taste Else i would prefer hakka noodles. But perception about
hakka noodles is that they are not easy to make , hence would prefer that such a
situation of non availability doesn't arise at all.
Strengths of Maggi Noodles as mentioned by the interviewee:
Taste , Availability , Brand Name
Weaknesses : Unhealthy, Bad Packaging – the crumbs often break in a 8 noodles
pack hence prefer a single pack.
Interviewee 4
Details: Mishaal Kumar Sarawgi
Gender: Male
Age: >26 years
Interviewer: Do you eat instant noodles? Do you like it?
Mishaal: Yeah i do , i like it. Like the taste but have it mostly because of the time
constraints and lack of alternatives in the snacks segment being a vegetarian. But
given a preference would much rather consume a sandwich or a parantha as its
alternative considering their availability.
Section D, Group 5 Page 49
Interviewer: How frequently do you have instant noodles, like how many times per
week? When will you generally have it?
Mishaal : I have atleast thrice a week . Prefer Vegetable Dal Aata Noodles (Maggi)
, because though I think maggi is unhealthy but vegetable aata noodles seems to be
a healthier option to me and I like its taste as well . Would much rather prefer to
have it over the conventional magic masala noodles. I have it before or while
watching a movie or as a night time snack. I buy 5 single packs on an average in a
month. In my family only I like it .
Interviewer: How many different brands of noodles have you tried so far? Include
hakka noodles also or any other thing which you might have tried.
Mishaal: I have only tried top ramen and Knorr's soupy noodles other than maggi .
But taste wise i prefer maggi over both of them.
Interviewer: So, what exactly do you look for in instant noodles?
Mishaal:The main factor for me while buying a pack of instant noodles is the
availability and ease of cooking , hence I prefer maggi in this segment and some
how I end up buying a pack of maggi whenever I go out for shopping as I have
been having it since my childhood , yet the taste still remains the same and I like it .
Interviewer: Well, is there any particular brand which you like most? Which one do
you buy most among instant noodles?
Mishaal: Vegetable Dal Atta Noodles (Maggi) is my most preferred brand in the
noodles segment and I consume atleast 5 single packs every month.
Interviewer: Is there any particular reason why you prefer Maggi over others?
Mishaal: The main reason is the Taste , ease of cooking and the availability are
value additions and it seems a healthier alternative ( the dal-aata noodles) as
compared to the other noodles in the market.
Section D, Group 5 Page 50
Interviewer: So, if the other brands are available in the local store, will you buy
them?
Mishaal: I dont think so , I would much rather prefer Maggi ( Dal Aata) rather than
any other brand , though I prefer to have Knorr's soupy noodles and Chings once in
a while for the sake of variety and to try out something different once in a while.
Interviewer: Do you feel that it is different in taste from other noodles?
Mishaal: There is something different about its taste , that I can't explain exactly ,
but one thing is for sure that the taste is the same since I have been having it as a
kid , and I used to love it back then also and still like it. It is definitely different when
compared Knorr's soupy noodles or Chings.
Interviewer: Are you aware that there are various varieties of noodles available like
Atta Veg Noodles, Chicken Masala Noodles etc? Have you tried them? Which one do
you like best?
Mishaal: Yes i am aware of it , in fact i have tried them all but still , I think the
Vegetable Dale Aata noodles triumphs over them easily. Though I liked the tomato
noodles variety a little but didn‘t like the Chicken Noodles at all
Interviewer: In your mind what are the top 3 brands of noodles? Can you just
compare them?
Mishaal : Comparing the three brands Maggi Top Ramen in terms of the factors
given below:
(Rating on a scale of 1 to 5 , 1being the lowest preference)
Maggi Top Ramen Knorr
Cost 4 4 3
Taste 4 4 4
Section D, Group 5 Page 51
Availability 5 3 3
Brand Name 5 4 4
Trust 5 4 4
Health 3 2 3
Interviewer: What will you prefer supposing that Maggi is not available?
Mishaal: Would much rather consume parantha or a sandwich , but in terms of
noodles I might prefer Top ramen noodles
Suggestions by the interviewee:
Launch masala variants such as Paneer Tikka or Manchurian Variety , another thing
can be to introduce exotic flavours such as italian or spanish flavours.
Interviewee 5
Anu , 35 years old, Working @ Dell
Interviewer: Do you like instant noodles?
Yes
Interviewer: When did you have it first? Which one?
In Gulf, when she was a child, during her child hood days. 20 years back, her mom
used to make for her. Now she is cooking for her child. She sees it as a healthy food
because she adds eggs and vegetables to it.
Interviewer: What did she purchase now?
She purchased Sunfeast Yippee noodles.
Interviewer: Why did she prefer it?
Section D, Group 5 Page 52
Because Sunfeast gives stickers free for noodles. Her son likes the stickers, the
advertisements show the stickers and they are good. Her son asked her to get
Sunfeast only.
Interviewer: How frequently do you have it?
Instant noodles twice a week. Generally her son has it. Occasionally, she and her
husband also have it
Interviewer: How many packs do you buy on an average?
2 standard size packets in a week.
Interviewer: How many people in your family like noodles?
Majorly, her son likes. But, occasionally, she and her husband also have it
Interviewer: When do you generally have it?
For dinner.
Interviewer: Are you aware of different brands of noodles?
Yes.
Interviewer: How many different brands have you tried?
Maggii ,Sunfeast and Top Ramen.
Interviewer: Can you compare the brands you tried?
Maggii – Preference 1 – Good Quality, Used it in Gulf also, Good Taste,Value for
money.
Sunfeast – Preference 2 – Good Taste, they give stickers which her son likes.
Top Ramen – Doesn‘t taste good
Interviewer: Why haven’t you tried other brands (if only has tried Maggi
or other brands)?
Section D, Group 5 Page 53
NA ( But prefers Maggii because she perceives Maggi to have high quality , buys
Sunfeast only for stickers and advertisement effect on her kid. She will go back to
Maggii once stickers are not given)
Interviewer: Are you aware of different types of products in noodles
category like Atta Noodles, Foodles,Cup noodles?
Yes. But she does not like them.
Interviewer: What do you think are top 3 brands in the noodles market?
Maggii, Sunfeast, Top Ramen
Interviewer: What is the single best feature of Maggi?
Quality
Interviewer: What do you think are Maggi’s strengths?
Quality, Taste, Value for money
Interviewer: What do you do when Maggi is not available?
Eat Idly/dosa
Interviewee 6
Sharan , 15 years old, Student
Interviewer: Do you like instant noodles?
Yes
Interviewer: When did you have it first? Which one?
7 years back, Maggii
Interviewer: What did he purchase now?
Maggii
Section D, Group 5 Page 54
Interviewer: Why did he prefer it?
Just for a change. He likes variety every time.
Interviewer: How frequently do you have it?
Almost daily
Interviewer: How many packs do you buy on an average?
10 packets a week.
Interviewer: How many people in your family like noodles?
Everyone. 4 members in his family(He, his mom,dad, grand mother.
Interviewer: When do you generally have it?
Anytime
Interviewer: Are you aware of different brands of noodles?
Yes
Interviewer: How many different brands have you tried?
Maggii,Knorr,Wai Wai, Top Ramen,Smith n Jones,Horlicks, Chung‘s
Interviewer: Can you compare the brands you tried?
Almost all are same. Whatever new variety comes, he tries it and buys it . He buys
Magii a little more frequently because other members in his family also eat it.
Interviewer: Why haven’t you tried other brands (if only has tried Maggi
or other brands)?
NA
Interviewer: Are you aware of different types of products in noodles
category like Atta Noodles, Foodles,Cup noodles?
Yes, but did not like them.
Section D, Group 5 Page 55
Interviewer: What do you think are top 3 brands in the noodles market?
Maggii, Sun feast, Chung‘s
Interviewer: What is the single best feature of Maggi?
Fast to cook, easily available anywhere.
Interviewer: What do you think are Maggi’s strengths?
Value for money, okay taste, other family members like it.
Interviewer: Under what situations would you prefer other brands over
Maggi?
Whenever there is a new flavour or product in market. He prefers variety and
novelty.
Interviewer: What do you do when Maggi is not available?
Buy Pasta .
Point of Sale Interview - Excerpts
Customer name : Vishwanath,42 years
1
How many people are there in your family? Among them, who eats noodles?
―I have 3 people in my family. My 10 years old daughter eats Maggi. I and my
wife also eat.‖
2 How often do they eat and how often do they buy noodles?
―Weekly thrice. We buy monthly once 2 big packets of noodles (6in 1 combo
packs of Maggi)‖.
3 How many family members actually like noodles? Who influences your choice for
noodles?
Section D, Group 5 Page 56
He buys mainly for her daughter. His daughter likes noodles. His daughter is the
main influencer.
4 When was the first time you had noodles (which brand)
―2 years back‖, Maggi was the brand
5 How did you come to know about noodles?
TV Advertisements
6 What do you look for while buying noodles (taste, health, fast cooking, price,
convenience)?
Price, fast cooking, tasty, evening snacks, vegetarian
7 Are you aware about other brands of noodles? Have you tried them?
He tried other brands but taste wise he found no difference.
8 What do you like about Maggi or other brand (whichever)?
―Maggi is tasty and price is cheaper, they give lot of offers‖
9 If noodles were not there then what will you buy?
Traditional South Indian food like upma.
Customer name : Anup,30
1 How many people are there in your family? Among them, who eats noodles?
5 people, all eat noodles- Anup himself, his wife, his son, his father and mother.
2 How often do they eat and how often do they buy noodles?
Twice a week, 1 1/2 kg a month.
3 How many family members actually like noodles? Who influences your choice for
noodles?
All like noodles. Anup himself likes Maggi and in turn his sons like Maggi. The
preference has been passed down to his next generation also.
4 When was the first time you had noodles (which brand)
Since Maggi was introduced in 1994, he has been eating. Noodles and Maggi are
synonymous. Maggi means noodles. Maggi brand itself became synonymous
with noodles. Like Dalda
5 How did you come to know about noodles?
Advertisements.
Section D, Group 5 Page 57
6 What do you look for while buying noodles (taste, health, fast cooking, price,
convenience)?
Convenience, Taste, Easy to cook
7 Are you aware about other brands of noodles? Have you tried them?
Yes tried Yippee and other variants in Maggi also. But they switched back to
Maggi Masala. Likes Maggi Masala only.
8 What do you like about Maggi or other brand (whichever)?
Fascinated by masala Taste of Maggi
9 If noodles were not there then what will you buy?
Masala oats or Pasta
Customer name : Reshma, Housewife, 26 years old
1 How many people are there in your family? Among them, who eats noodles ?
3 people, All eat noodles- Reshma herself and her husband.
2 How often do they eat and how often do they buy noodles?
Twice a week, 10 packets (Standard size) + 4 small size packets a month.
3 How many family members actually like noodles? Who influences your choice for
noodles?
All like noodles, all like yippee only.
4 When was the first time you had noodles (which brand)
Sunfeast Yippee noodles, at her mom‘s place. But calls it Maggi
5 How did you come to know about noodles?
Her brother introduced her to noodles. He prefers noodles mostly for food.
6 What do you look for while buying noodles (taste, health, fast cooking, price,
convenience)?
Healthy (Yippee is like rice), Taste, Small packs sufficient for kids
7 Are you aware about other brands of noodles? Have you tried them?
Yes, tried them , but didn‘t like them
8 What do you like about Maggi or other brand (whichever)?
Vegetables already there so it is healthy, Masala is less and less spicy – can feed
1 year daughter.
Section D, Group 5 Page 58
9 If noodles were not there then what will you buy?
Semiyaa
Customer name : Amol, 24 years
1 How many people are there in your family? Among them, who eats noodles ?
Living in PG accomodation. Buys for himself. Works in Accenture.
2 How often do they eat and how often do they buy noodles?
Twice a week, Weekly 5 standard packets of Maggi
3 How many family members actually like noodles? Who influences your choice for
noodles?
NA. Bachelor. He buys for himself.
4 When was the first time you had noodles (which brand)
In Mumbai, 4 years back, Maggi
5 How did you come to know about noodles?
Had it at friend‘s place in Mumbai. He didn‘t know how to cook then.
6 What do you look for while buying noodles (taste, health, fast cooking, price,
convenience)?
Easy to make (just boiling water needed)
7 Are you aware about other brands of noodles? Have you tried them?
Have not tried other brands. Not interested. Likes only plain Masala Maggi.
8 What do you like about Maggi or other brand (whichever)?
It is tasty and easy to make at night, he works in night shift and comes at 3 am
in morning. Maggi is easy and tasty to make then. Sometimes, he eats Maggi in
office also.
9 If noodles were not there then what will you buy?
Milk, can have it easily in early morning.
Sandeep( student)
1 Do you like instant noodles? How frequently do you have it? How many
Section D, Group 5 Page 59
packs are do you buy on an average? How many people in your family like
noodles? When do you generally have it?
He eats instant noodles almost every day. He generally buys mega packs if
there are any offers like price discounts. Everybody in his family likes
instant noodles. They have it as a snack in the evening.
2 How many different brands have you tried? Why you haven't tried other
brands? (if only has tried Maggi or some other noodle)Are you aware of
the different types of products in the noodles category like Atta Noodles,
Foodles, Cuppa etc?
He tried almost every brand that came into the market except reliance
product which came recently
3 Are you aware / have tried 3 different brands of noodles?Can you compare
them
Coming to comparison, basically he is a variety seeker he never sticks to a
single brand, he just randomly chooses a brand . This time he picked up
Maggi combo size packet. He said he is getting price advantage of buying
larger packets over smaller ones.
4 What do you think are the top 3 brands in the noodles market?
TopRamen, Maggi, yippee
5 What do you think is the single best feature of Maggi/..? dislikes if any?
Taste , he does‘t like maggi cup noodles, he found change in the taste and
flavor when it is mixed with hot water.
6 Under what situations would you prefer some other brand/product over
Maggi / preferred brand?
If noodles are not available, his second preference is pasta which he finds
it tastes good and more over the availability in different flavors. He needs
variety in terms of flavor
7 Do you know someone who prefers a different brand / product? Why do
think he prefers
he said most of the people like maggi…
Neha, Housewife
Section D, Group 5 Page 60
1 Do you like instant noodles? How frequently do you have it? How many
packs are do you buy on an average? How many people in your family like
noodles? When do you generally have it?
she likes to have instant noodles once in a week, mostly on the day when
she feels too tired to cook after coming from office. She takes it as a
meal. She frequently switches between maggi and yippee, this time she
bought yippee.
2 How many different brands have you tried? Why you haven't tried other
brands? (if only has tried Maggi or some other noodle)Are you aware of
the different types of products in the noodles category like Atta Noodles,
Foodles, Cuppa etc?
She tried both yippee and maggi, Though she is aware of other brands,
she never felt trying those brands.
3 Are you aware / have tried 3 different brands of noodles? Can you
compare them?
She finds tastes of both maggi and yippee is almost same. She said prices
are almost same. The main factor that she likes about these instant
noodles is that they can be made easily
4 What do you think are the top 3 brands in the noodles market?
Maggi, yippee, Top Ramen
5 What do you think is the single best feature of Maggi? Dislikes if any?
Easy to cook, The factor that she doesn‘t like is that maggi gets sticky if it
is over boiled, It won‘t happen with yippee.
6 Under what situations would you prefer some other brand/product over
Maggi / preferred brand?
She prefers oats, as they can be made easily and they are good for health
as well.
7 Do you know someone who prefers a different brand / product? Why do
think he prefers
She said every one prefers Maggi
Section D, Group 5 Page 61
Company Interview
Interview transcript
Interviewee: Jithin Prakash
Position : Did summer internship at Nestle. He was the spokesperson from Nestle
regarding Maggi noodles.
Interviewer: How is Maggi doing now?
Maggi still rules the roost, by holding more than three-fourths of the ` 2,500 crore
noodle market in the country, as of September 2012. Nestle has launched several
new variants — one of the newer ones is Maggi Masala Damdaar.
Maggi is being currently challenged by aggressive new entrants such as Sunfeast
Yippee, Horlicks Foodles and Knorr Soupy Noodles and other local varieties.
Interviewer: What is your current plan?
Nestle have roped in Amitabh Bachchan as our brand ambassador.
Nestle are also running a dealer engagement programme as part of its '2 Minutes
Mein Khushiyan' campaign. This Khushiyan campaign includes a unique 'Khushiyon
ka Badshah' engagement program with dealers..
Actually, Nestle is running the campaign among all its stakeholders-consumers,
trade, business partners and employees. The idea is to bring all our partners to be a
part of the campaign. Nestle also introduced bigger packet sizes by introducing
various combo and multi packs.
Interviewer: Why this plan?
Section D, Group 5 Page 62
Nestle is offering incentives to buy company products in bulk. This reduces the
trade‘s options of stocking rival brands. Nestle's trade incentive scheme for Maggi
noodles is aimed at reviving its sales volumes, which declined 2% year-on-year in
April-June quarter as the company focused more on pricing than volumes.
Our discount scheme for Maggi noodles is possibly the first in 10-15 years.
We want to grow the consumption also, hence the latest combo packs.
Interviewer: Do you feel Maggi is susceptible to competition?
Maggi's domestic volume growth has been decelerating since excessive price hikes is
a primary reason, in our view. Getting volume growth back on track will be a big
challenge
2012 is proving to be a very challenging year. We remain cautious thanks to
persistent inflation, uncertain monsoons and economic volatility. We are offering
trade incentives to distributors so that they reduce trade‘s options of stocking rival
brands. We want to cement ourselves in the consumer mind space and hence we
roped in Big B as our brand ambassador to build a more strong relationship with
them now.
Section D, Group 5 Page 63
Appendix II
Survey Results: (Excluding telephonic)
Age
<25
39 68%
25 - 30
13 23%
30 - 40
3 5%
>40
2 4%
Gender
Male
45 79%
Female
12 21%
Which brand comes to your mind first when you hear the word noodles ?
Maggi
52 91%
Top Ramen
0 0%
Chings
1 2%
Yippee
4 7%
Other
0 0%
Which noodles brand do you most frequently buy ?
Section D, Group 5 Page 64
Maggi
44 77%
Top Ramen
4 7%
Chings
0 0%
Yippee
7 12%
Other
2 4%
What comes first in your mind when you hear the word Maggi ?
Snacks
18 32%
Fun
8 14%
Tasty
29 51%
Other
2 4%
Which Maggi product (if any) do you like most ?
Masala Maggi
37 65%
Chicken
6 11%
Atta Noodles
14 25%
Other
0 0%
1 thing that you don't like about Maggi
Taste
9 16%
Health
35 61%
Price
4 7%
Other
9 16%
What do you prefer most while buying instant noodles?
Taste
17 30%
Health
3 5%
Price
1 2%
Ease of Cooking
36 63%
Other
0 0%
How many different brands of noodles have you tried ?
Section D, Group 5 Page 65
1
2 4%
2
14 25%
3
16 28%
>3
25 44%
None
0 0%
Does Maggi taste better than other instant noodles brand ?
Yes
32 56%
No
9 16%
Can't Say
16 28%
Do you think Maggi tastes better than ethnic Chinese noodles as available in restaurants ?
Yes
28 49%
No
29 51%
Have you ever shifted from one noodle brand to another ?
Yes
21 37%
No
35 61%
If Yes kindly mention the brands and reasons for shifting ( 1 line)
changeSeeking VarietyTop ramen,Yippee, foodles...just to check the taste and flavor.Just for fun. Not that I
disliked it.Yippe! Its taste is different from Maggi!Availabilitytopramen, yippee, foodles......just for a change....to try
out new flavor.Top Ramen Curry More spicyif taste is good than present noodlesFor a change of taste, shifted to
top ramen for a whileFor a change of taste, shifted to top ramen for a whiletop ramen. Maggi noodles not
available out of indiaqrjkdfhjkdsadfhnjkm,wqertyuiopodsdfvbhnjmMaggi is stickyMy son likes YipeeYippee, they
are giving stickersYippee is cool for m...
What are the top 3 brands in the noodles market ?
Section D, Group 5 Page 66
Maggi
49 94%
Sunfeast Yippee
28 54%
Top Ramen
39 75%
Foodles
14 27%
Chings
7 13%
Other
1 2%
What do you think is the best product in terms of taste ?
Maggi
42 74%
Sunfeast Yippee
6 11%
Top Ramen
5 9%
Foodles
0 0%
Chings
3 5%
Other
1 2%
What do you think is the best product in terms of quality ?
Maggi
37 65%
Sunfeast Yippee
10 18%
Top Ramen
8 14%
Foodles
2 4%
Chings
0 0%
Other
0 0%
What do you think is the best product in terms of health ?
Section D, Group 5 Page 67
Maggi
30 53%
Sunfeast Yippee
9 16%
Top Ramen
5 9%
Foodles
7 12%
Chings
1 2%
Other
5 9%
What do you think is the best product in terms of ease of making ?
Maggi
45 79%
Sunfeast Yippee
7 12%
Top Ramen
4 7%
Foodles
0 0%
Chings
0 0%
Other
1 2%
What do you think is the best product in terms of value for money ?
Maggi
43 75%
Sunfeast Yippee
8 14%
Top Ramen
3 5%
Foodles
0 0%
Chings
0 0%
Other
3 5%
What is your 2nd preferred noodles brand?
Maggi
11 19%
Sunfeast Yippee
17 30%
Top Ramen
23 40%
Foodles
3 5%
Chings
3 5%
Other
0 0%
Section D, Group 5 Page 68
What do you think is the single most important thing which distinguishes Maggi from others ?
Taste
24 42%
Price
3 5%
Quality
3 5%
Availability
11 19%
Health
0 0%
Generation Old
6 11%
Variety
3 5%
Ease of preparation
7 12%
Other
0 0%