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 coo k 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 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 Foods
Pet Food Maggi Seasoning Ice cream Beverages
Specialty Items Maggi Taste of Asia Baking 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 t elevision.
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, tom ato, 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
• • •
Positioning • •
Social Class : Middle and upwards Family Life cycle : Young, Married , and married with children Life style : Hard press of time
Fast to cook-Good to eat 2 minutes noodles
Target Market • •
Primary Target: Children (>16 years) Others : Family Health conscious people: Maggi Vegetable Atta Noodles Young 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 Search An 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 e valuate 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 Actions Satisfaction 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 t rend.
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
Percentage
Yes
50
100%
No
0
0%
Total
50
How Many people buy Maggi
No 0% Yes No
Yes 100%
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
Percentage
Yes
28
56%
No
22
44%
Total
50
Have you tried Different Variants of Maggi
Yes
44% 56%
No
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 18-25 Years
Percentage 23
46%
26-30 years
18
36%
31-40 Years
7
14%
41-50 years
2
4%
Total
50
Age group Wise wise: How many people prefer to buy maggi 41-50 years 4% 31-40 Years 14% 18-25 Years 18-25 Years 46% 26-30 years 36%
26-30 years 31-40 Years 41-50 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
Percentage
Students
15
30%
Parents
6
12%
Working Men/Women
29
58%
Total
50
Occupation wise: How many people prefer to buy maggi
Students 30%
Students Parents
Working Men/Women 58%
Working Men/Women Parents 12%
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 he alth (C-sat: 28%). Motivational factors Taste
Yes 50
No 0
Customer Satisfaction % 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%
Motivational Factor Good For Health Taste 5% Loyality 18% 12%
Taste Price Ease to make
Quality Assurance 15%
Price 17%
Reliability Quality Assurance Loyality
Reliability 16%
Good For Health
Ease to make 17%
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
Percentage
Maggi
23
46%
Yippi
1
2%
Top Raman
9
18%
Wai-Wai
12
24%
Knor
5
10%
Total
50
BRAND YOU WOULD LIKE TO BUY Knor 10%
Wai-Wai 24%
Maggi 46%
Top Raman 18%
Yippi 2%
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 r espondents would like to buy and refer this product to t heir family and dear ones, let alone customer satisfaction level of this product is 62% Yes
31
No
19
Total
50
Satisfaction level
62%
would you like to buy the product again
No 38% Yes No Yes 62%
Ques8). What comes first in your mind when you he ar the word Maggi? Response: Here we tried to check the perception of consumer t owards 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)
Percentage
Noodles
41
82%
Fast food
0
0%
Snacks
9
18%
None of these
0
0%
Total
50
Perception : Maggi is ? None of these 0% Snacks 18% Fast food 0%
Noodles Fast food Snacks None of these Noodles 82%
Ques 9). Which of the following Maggi variants do you re lish? Response: Out of 50 Respondents we found 48 r espondents (96%) relish on Maggi 2 minutes noodles Maggi variants do you relish?
Percentage
2 minutes-Masala Maggi
48
96%
Atta noodles
1
2%
Vegetable multi grain noodles
1
2%
Cuppa mania
0
0%
Total
50
Maggi variants do you relish? Atta noodles Vegetable 2% multi grain Cuppa mania noodles 0% 2%
2 minutes-Masala Maggi Atta noodles Vegetable multi grain noodles Cuppa mania
2 minutes-Masala Maggi 96%
Categorization of Maggi noodles
On the basis of age group Age group wise overall Category
Outstanding
Good
Average
Caution
Alarming
18-25 Years
9
11
2
1
0
26-30 years
6
8
3
1
0
31-40 Years
1
6
0
0
0
41-50 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 re spondents it is “Good” for 5 respondents it is “Average” product.
On the basis of Motivation: Motivation wise Outstanding
30
Good
17
Average
3
Alarming
0
Out of 50 respondents , motivation level of 30 respondents are “Outstanding”, for 17 it is “Good”, and for 3 it is “Average”.
MOTIVATION WISE 30
17
3 0 OUTSTANDING
GOOD
AVERAGE
ALARMING
On the basis of Motivation and Perception Motivation and Perception Wise
Response
Outstanding
22
Good
19
Average
9
Alarming
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”.
MOTIVATION AND PERCEPTION WISE
22 19
9
0 OUTSTANDING
GOOD
AVERAGE
ALARMING
On the basis of Attitude Attitude Wise Good
28
Average
22
Bad
0 50
Here we found out of 50 respondents, 28 respondents have “Good”, 22 r espondent have “Average”
attitude towards the product
ATTITUDE WISE 28 22
0 GOOD
AVERAGE
BAD
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
Taste (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
No
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 he ar 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