Section 8

Team 3
Date of submission: 31/03/2021

Id Name

#2112000630 Aksam Ibne Rafiz

#2111967630 Shuhad Shahriar

#2014039630 Farhana Kabir Lamia

#2112465630 Md. Mahin Kabir

Faculty: SBE, Department of Marketing and International Business

Question 1
What are the marketing mixes being used by your assigned brand (4 p’s-
product/price/place/promotion)?

Answer: In advertising, 4ps imply the following: Product, Price, Place, and Promotion.
Publicizing procedure helps associations with achieving business targets and objectives. Maggi
uses this 4ps strategy aggressively in Bangladesh and that is possibly why Maggi is quite the
most adored and eaten food in Bangladesh despite initially being just a powdered soup of bean
and pea.

Maggi product technique: Maggi has presented various products in the market as indicated by the
requirements and tastes of its customers. Maggi has a wide collection of things and has a
substitute reach for each country. The major Maggi products in the arrangement are quick
Noodles, Chicken soups, chicken seasoning, Thai sauce, soya sauce etc.
Maggi pricing methodology: Maggi has an obvious strategy in regards to its costs and has an
entrance value system. In Bangladesh, Maggi has kept low estimations on the grounds that most
of its customers belong to the working-class. And to keep up with the evolving time and costs,
Maggi has scaled down the volume of their products, rather than the costs unbeknownst to the
public and offers various sizes of bundles which is to sell more for less while also being an
attempt to reach all sections of pay class.
 Different bundle sizes

Product-distribution: Maggi has no dedicated stores in Bangladesh, instead it uses the already
existing businesses and sells their products through them. Their distribution system is so flawless
that even small shops are almost assuredly most of the time never out of Maggi Noodle stock.
Maggi promotion techniques: Maggi in Bangladesh are essentially running their special exercise
in spreading awareness among female adults and children. Maggi's slogan, 2-minute noodles are
known to be the most brilliant slogan in Bangladesh. Maggi also often declares numerous offers
and held numerous sponsorship which boosted its brand recognition to never-before-seen
heights. That and coupled with Maggi’s endless promotions, the masses ended up believing in
their Brand’s declared value. Maggi also advertises their products through Web-based social
platforms like Facebook, Twitter and YouTube. Nowadays because of their ever-present Brand,
Maggi Noodles have become mainstream in Bangladesh.

One of the many Maggi sponsorships

Question 2
How is your assigned Brand segmenting the consumer market? Who is the main target segment
(Bases for segmenting the consumer market)?
Answer: At the moment the Bangladesh market offers a rich number of various noodle products.
As such Maggi is today working in a profoundly serious market. And fierce competition for
noodles exists where Magi is among the top because of many reasons but primarily because it
segments consumer market.
Demographic: Age and sexual orientation are both parts of the socioeconomics considered by
Maggi and as such, they are zeroing in on the youthful working individuals who don't have a lot
of time to set up a dinner. Maggi noodles are divided into age gatherings (covering all age ages).
Maggi noodles like the normal version, spicy version, Bangkok chilli version and so on are
devoured vigorously by all ages particularly youngsters. Youngsters and adults love these
flavours so much so that new products are to be unveiled and some of them are going to be
catered towards children while the rest will be for adults.
Geographic: Geographically, Bangladesh is not as diverse for Maggi to employ segmenting
strategies but in general Maggi is prevalent at the Capital of the country, Dhaka. It is also present
in other divisions but not nearly with the same concentration.

Psychographic: An Individual may not have the time to for a meal and may miss his/her daily
important meals let alone cook or prepare the food. As a response to this Maggi has significantly
sectioned its product line to cater to the ways of life and dietary patterns of its customers. As of
now, customers with stressful or demanding work environments have little time for meals thus
this led to Maggi introducing their product line of instant Cup noodles. The cup noodles, just like
previous products under Maggi’s umbrella come in different flavors.
Behavioural: Behavioural segmentation is when a product is catered differently depending on the
behavioural patterns of the customers and how they react to the company. The customer’s
reaction and how the items assist them with accomplishing what they expect from the product,
all of this has been considered by Maggi. Hence after careful analysis, Maggi has introduced
versions of their noodles where a plastic fork or spoon, depending on the type of product, would
be included, just so to reach the audience they were missing without the utensils.

Maggi’s Target Audience:

• Kids
• Youth
• Working ladies
Positioning: The motivation behind positioning is to make a reasonable and good picture of the
brand and its contribution to allow the brand’s customer to visualize where the product stands.
Companies can use this to position themselves so that they get an edge and in turn look superior
in the eyes of the masses which will result in more customers choosing the product. Maggi at one
point wanted to cater towards housewives but they were already advertising their product being
for children so as a solution they introduced Maggi healthy noodles and began to distribute them
as a meal for housewives that provided all the nutrients they would require.
2-minute noodles:
• Tasty and solid
• Easy to cook
• Good to eat
Question 3.
How is your assigned product positioned in the market? Does it have competitive
advantage to gain a winning value proposition? Create a basic positioning map for your
brand.
Answer: The Maggi company, owned by Nestlé, has a wide range of diverse products most of
which are yet to be introduced in Bangladesh. Though this is the case, Maggi branded products
are highly recognized locally and among them Maggi noodles even more so. As such, the
consumption rate of their noodles is among the top, out there with other competitive brands. As
recognizable as it may be, the company is notorious for its disregard of health factors when it
comes to the ingredients of the product, Maggi noodles. Other than that, unethical means of
production and labour has been a long-standing concern of the public the company refuses to
address. Additionally, pollution and misleading advertisements to favour their sales have also
been an issue plaguing the company.

Estimated Noodles market share in Bangladesh

Despite all the infamous reputation they hold, Maggi is doing massively well in the local market.
It is targeted towards the lower-income to the middle-income groups, indicated so by its cheap
affordable pricing. It's meant to be a quick and easy meal, extinguishing the urge of hunger on
short notice. As such its targeted towards the children-age group to mid 30s men, seeing as how
simple it would be to make. To further add, most adults nowadays are too occupied to make food
or some are unable to cook in the first place so it's no wonder they’ll choose Maggi, an easy
meal. This is especially the case in rural villages where people are not as educated in food and
consume Maggi to substitute for their meals.

Positioning map for Noodle brands along with Maggi

*Noodles on the right: A-SHA Taiwan noodles and Samyang
Now, needless to say, high-income groups with disposable income would opt out of purchasing
Maggi because it is extremely unhealthy to consume on a regular basis. And despite being called
nutritious it contains high levels of chemical compounds. This leads us to another problem,
misleading advertisements. Maggi in the past has openly advertised their noodle as being
nutritious but in reality, that would only be true if you were to include in meat and vegetables,
the noodles alone would just be an empty cup of calories. As such, highly educated people don’t
fall to these misleading campaigns but many who aren’t do.
Also, ethical concerns are something people wonder about when numerous available products
are presented before them. They would naturally want to choose a good product as well as
support a company that has a clean-ethical track record. Maggi, however, does not and as such
moral integrity costs them, potential customers.
So, do they have a competitive advantage? I would say no, with all the aforementioned issues,
other big companies are trading blows with Maggi and the only thing that is assisting Maggi to
stay among the top in terms of sales is its cheap price and a plethora of advertisements that has
solidified its recognizability among the less educated masses. And as for value proposition, it
uses the “more for the same” sales tactic intensively, delivering as many packs of Maggi to every
house possible, expanding their brand name even more.

Question 4.
A. Discuss the “levels of product” for your assigned product.
Answer: An individual would normally purchase Maggi when in a hungry state or in
preparation for the future. The customer expects the Maggi noodles to sufficiently end his hunger
status. This would be the main Primary Benefit. Secondary would be the Main-Product, which is
a block of solid noodles with a sachet of seasoning or extra spice, depending on the version
bought. Then there is the Expected-product which is what a customer expects from the product
and what he/she gets in reality. So, when a customer comes to holds a Maggi, he/she expects it to
be in a clean state and proper packaging inside and outside. He/she also expects it to open
smoothly when attempting to tear open the pack. Finally, when the noodle is cooked and ready to
eat it would be expected to taste good, even without any meat or vegetables.
 The five-level design diagram

Furthermore, there exists two more additional product levels, Augmented and potential product.
Augmented refers to products being fundamentally the same but existing with different
variations. It can be a sweet or spicy version of the basic Maggi or it can be a Maggi with
different addons inside to cater the noodle to the customer’s taste. It can also be anything that
sets Maggi apart from its rival products. Now, the potential product refers to the surprise factor a
customer may possibly get in the future. It can be anything from being a lottery code on the back
of the noodle pack to a checkup call on the customer to see how he/she is faring.
This five-level design enables companies to plan and execute their strategies with a minimized
margin of error and is what allows them to set themselves apart from their competitors.
B. How are strong Brands created? Is your product successful in being a strong brand?
Justify your answer.
Answer: A “Brand” is an identity of a product or service that a business or an individual can use
to differentiate their product from the other myriad products in the market. One cannot simply
create a brand with a single product, to build a brand, the company must have consistent success
with the product, with a track record of preferably exceptional build quality. Price here is often
rarely a factor since if the product has adequate redeeming qualities other competitors fail to
respond to, consumers will buy it. The brand logo must also be consistent with only slight
changes to avoid alienating the customers but also evolve with time. As such, with a clean record
of successful releases, customers grow to trust the company with the brand in their mind and are
more than likely to adopt any new products introduced by the company.

Brand Equity Diagram

In General, pinpointing the purpose the brand is serving, who it is serving (target audience) and
how it differs from its competitors is a good start. Then comes the brand name, the hardest part
because it has to reflect on the service or products under the brand’s wing as well as future
potential expansions that may or may not happen. After completing the aforementioned
milestones, brand-mission-statements, brand-logos, taglines etc can be used to further strengthen
and solidify the brand.

Maggi Brand logo

Companies with strong brands have high consumer awareness and possess great trust from their
customers. Maggi holds a lot of trust among their customers and thus, the customers purchase
Maggi without question. Even though Maggi is not the best health contributor, even though it has
a myriad of ethical issues on its record and even though it has misled the public in the past, it still
sells. This is because of its brand weight. People trust and have faith in the brand to deliver their
expected benefits. An example of how significant brand weight is can be seen when one analyses
the fast regrowth of Maggi after their ban of 2015 in India. In Bangladesh Maggi continues to
heavily face competition but alas its strong brand name holds it above the rest, making it the
most recognized and most purchased.
5. What are the characteristics that affect consumer buying behavior and which
characteristics are affecting the consumer buying behavior for your assigned product?

Ans: The way an individual customer takes action before buying the product or service is
Consumer buying behavior. Our product is Maggi noodles. The demand for instant meals is
increasing rapidly every year due to the increase of work, heavier traffic, and people usually getting
busier day by day. And growing importance is given to workouts and healthy existence. Among
all the country China has the highest demand for instant noodles from 2008-2014 followed by
many Asian countries.
Bangladesh is in the 26th position for consuming instant noodles and it is seen in the market that
is shown an increased demand. There are many noodles’ brands in the market right now but one
of the top brands and top-selling instant noodles is Maggi noodles.

Consumer Characteristics of Maggi Noodles identified

Maggi Noodles:
Personal 5 lifecycle stages:
factor
• Need a quick meal • Kids
during rush hour/Busy • Teenagers
life (Lifestyle) • Youth/College
• Available option or students
choice of quick meal • Adult
(Lifestyle)
• Old people
• Time of quick meal
preparation Consumer Profession:
(Perception)
• Household
• Convenience of quick
• Private Service
meal preparation
holder
(perception)
• Govt. service
holder
• Others

Fig-Consumer characteristics and their personal factor

 • Cultural Factor: As we are Bangladeshi, the peoples of our country have
different tastes. Some love to eat sweets and some love to eat spicy food. But we have
always known that noodles have been one of the delightful snacks of our country. No
matter what the occasion is, it's one kind of common snack seen in every house. So,
Maggi noodles didn’t stop their journey rather they started making different varieties of
noodles based on people's taste and culture.

Consumer Decision Making

Psychological Field:

• Motivation
Need recognition
• Perception
• Learning
• Personality
Prepurchase Search
• Attitude

Evaluation of
Alternatives Experience

Consumer manipulation and buying of any product mostly hang on upon their perception of the
product. Perception develops or changes through the help of the marketing and branding of the
product. Because of this perception company spend much on marketing to change the consumer
mind and even brought them toward the product. Perception is how humans recognize and their
eagerness to buy the product.
Not only perception but also a company need motivate and teach their customer about their
product so that people love to buy the product. So as Maggi Noodles have recognition and branding
people easily fall for this but they should be more careful on culture as people love to taste many
kinds of Flavor.
 Gender proportion How Consumers Make
Purchase

45% 36%
55%
64%

Male Female Planned Impromptu

Figure-01 Figure-02

From the above figure-01, it is seen that mostly males buy instant noodles, so it can be identified
that mostly males of the family do the retail shopping. But there is a good percentage of females
as well. So, it can also be said that both genders buy noodles (might be Maggie or any other)
equally. From the figure-02 the study of the purchase decision of noodles confirms that 64% of
customer pre-plans and list down their need to buy or purchasing noodles (it maybe Maggie
noodles or some other brand) and makes a deliberate purchase choice whereas 36% tends to
make the purchase decision on need basis. By analyzing the figures, we can see that Noodles is a
vital item on the majority of customers basket.

So, at last, I am going to say that Maggi noodles are a great player right now on the market but it
will be much harder for them to stay in the market. They need to focus more on the cultural
factor. They need to bring a lot of flavor for the people of our country as the people of our
country love to taste.
6.Discuss whether the product assigned for you is using the selling concept or the
marketing concept. Justify your answer.
Ans: Nestle or Maggi Noodles follow the Marketing Mix Strategy for marketing their product.
They don’t follow the selling concept because they focus on the customer’s needs. The selling
concept means a company’s main aim is to sell what the company makes rather than making
what the market wants. Mainly food companies don’t use this selling concept cause it’s much
risker. Yes, Food companies do marketing to get in touch and to create awareness about their
product. But they don’t follow mass selling.
The market for instant noodles is growing rapidly. According to me, the market has been divided
into two variables; Demographic and geographic. Nestle/Maggi can serve the niche market at
present shown by the B2B prospect and also its brand reputation to create awareness for Maggi
noodles (2 min Noodles). Nestle has around 150-200 distributors in Bangladesh and this is one of
their biggest strengths. Still, their main target or challenge is to create awareness. The primary
Target market for Maggi noodles is children between the ages of 7-14. And the secondary target
is mothers who make the purchase in most cases.
As the market keeps on growing in this sector so Maggi Noodles is also growing. But Cocola has
a higher resource constrain compared to Nestle. But Still, Maggie noodles keep on going and
launching different varieties of flavor (Though Bangladesh has only 2-3 flavors).

Figure: Promoting and creating brand awareness with the help of celebrities.
From the above picture we can see that with the help of the Actor and actress, Maggi noodles are
creating brand awareness so that kids think they must try Maggi noodles. And that’s exactly what
Maggi Noodles wants. Brands are powerful assets that must be carefully developed /managed so
that everyone should know about the brand and everyone should utter the brand name and tell
his/her Friend, Family, and even relatives. And MAGGI engages in various kinds of ATL and
BTL communication to raise consumer awareness. Not only with the help of ads but also, they
take part in different kind of festivals and create mass awareness and a huge discount is shown to
attract the consumer.
Maggi Noodles also make family-based advertisements to attract its customer. Most of the ads
are based on mother and children like their children is tired or having a bad day and then mother
delight their child with special Maggi Noodles. They even marketed the product not as the main
food item but as a snack in the evening, that’s too for the kids and youth.

Maggi Noodles Marketing Strategy:

Segmentation Targeting Positioning Differentiation
• Age • Kids • Fast to • Taste
• Habit • Teenagers cook. • Flavors
• Lifestyle • Youth/College Good to • Packaging
students eat. (Available in many
• 2-
• For elderly size)
Minute
people who • Variants
Noodles.
think cooking • MAGGI • Cheap
is hard. মানেই
• Office going ভিন্ন
people
স্বানে
প্রভিভেে!

Reason for success in the Food Industry

• Maggi got the first-mover advantage with respect to the Instant noodles segment in the
Bangladesh market.
• Keep on focusing on the market about people's needs. So basically, they have succeeded
in their marketing and branding but one thing is for sure that A company should never stop
marketing and should always focus on market demands. And they should always develop the
product according to consumer needs. In Maggi noodles, they are improving their flavor
according to market demand.
7. Which strategies for growth are being used by your assigned product? (Market
penetration/ Product development/ Market development/ Diversification) explain with
examples. If your given product is not growing, then suggest some strategies for
growth for them.
Ans: There are many growth strategies of Maggi Noodles. But Mainly they follow Customer-
driven Marketing Strategy. The future more has to do with selling an experience, not just a
product- in order to satisfy the demand of the people they need to target the consumer correctly.
Without focusing on the consumer, the product cannot be developed.
But as Maggi Noodles follow a good marketing strategy mentioned in Answer 6, that they are
doing well in the market as they determine the consumer needs. The benefits and disadvantages
of eating noodles are some of the main reasons why people mainly think about noodles.

Maggi Noodles
Existing New

Market penetration Product Development

Existing Need to upgrade Existing Variants Introduce and innovate new variants of
Maggi Noodles. Maggi Noodles.
• Maggi Masala • Maggi masala blast x spicy
• Maggi Masala blast • Need more flavor Maggi noodles.
• Maggi Chicken double pack

Market development Diversification

New • Finding a new market for Launching New variety of ramen and new
existing variants of Maggi flavor.
noodles.
• Promotional pricing

Maggi uses all of the processes and this is true because we see more ads nowadays and Maggi is
found almost in every store. You can’t name a shop where you can’t find Maggie Noodles.
Market development is seen clearly because we now have a spicy flavor and a new Taiwan
flavor noodles (Still haven’t found in Bangladesh). We found only two in Bangladesh. They are
masala noodles and Maggi masala blast noodles. And market Diversification is definitely taking
place because now we can see other Maggi products in the market. For example: seasoning
Maggi, many kinds of Maggi masala, cubes, Maggi soup, etc. But they are still developing their
brand. Improving much stuff by focusing on the consumer.

Some strategies to grow Maggi Noodles: Maggi is a big company and it has a lot of products to
sell on the market. But let's talk about Maggi. Within the last few years, the growth rate hasn’t
increased much. It’s a small fall for a big company like Maggi. As Maggi succeeds in creating
brand awareness now they could use a mass-selling strategy through giving discounts and
vouchers to Maggi products. So how can they mass promote the product right? They can make a
strategy like if you buy Maggi noodles then you could give a voucher or discount to you friends,
relative or anyone you like. So why I think this strategy will work? As our county is not a rich
county people usually look for vouchers including me, to be honest. And not only this there will
be a mega discount for a month where there will be a discount package for Maggi product. And
they could make a mystery Maggi noodles package where people must have to buy the package
to check what is inside and what kind of product is it. Literally, they could get some attention
from the public as well. So I don’t know how everyone will react but according to me, it could
boost sales.
References

Answer 1 and 2

https://www.nestle.com.bd/brands/maggi-noodles

https://www.thedailystar.net/news-detail-115419

https://www.studymode.com/subjects/marketing-strategy-of-maggi-soup-in-bangladesh-page1.ht
ml

https://www.chaldal.com

Answer 3

https://www.zmescience.com/science/nestle-company-pollution-children/

https://en.wikipedia.org/wiki/Maggi

https://www.quora.com/Are-Maggi-instant-noodles-really-nutritious

https://www.thequint.com/explainers/nestle-maggi-controversy-explainer

https://www.practo.com/healthfeed/healthy-foods-that-are-actually-junk-foods-4939/post

https://www.healthline.com/nutrition/instant-noodles

https://www.boxgreen.co/blogs/the-pantry/how-often-can-i-eat-maggi-mee-so-that-its-not-harmfu
l

https://www.ethicalconsumer.org/company-profile/nestle-sa#:~:text=Our%20research%20highlig
hts%20several%20ethical,farming%2C%20anti%2Dsocial%20finance%2C

https://www.bartleby.com/essay/Ethical-Issues-Of-Maggi-Controversy-Nestles-Instant-FCZPR5R
MKG#:~:text=The%20Nestl%C3%A9's%20Maggi%20noodles%20were,and%20MSG%E2%80
%94%20a%20flavor%20enhancer.

https://www.mordorintelligence.com/industry-reports/instant-noodles-market-bangladesh

https://www.thedailystar.net/business/news/nation-noodle-lovers-1854271

Answer 4
https://www.researchandmarkets.com/reports/4828320/bangladesh-instant-noodles-industry-gro
wth

https://www.nestle.com.bd/brands/maggi-noodles

https://en.wikipedia.org/wiki/Maggi

Answer 5

http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/8145/13304132_BBA.pdf?sequence=1
&isAllowed=y

https://www.researchgate.net/publication/328212097_Purchase_Behavior_of_Noodles_A_Case
_Study_of_Effort_Primary_Food_Diversification_in_Indonesia

https://www.researchgate.net/publication/258650208_Consumer_Perception_and_Buying_Deci
sionsThe_Pasta_Study

https://wlifemediadotcom.wordpress.com/2019/01/15/a-study-of-consumer-behaviour-on-maggi-i
nstant-noodle-products/

https://www.nestle.com.bd/brands/maggi-noodles

https://classroom.google.com/u/0/c/Mjc1MTg5NTE0MDk2/m/Mjk0NDM1ODU0NzUy/details

Answer 6

https://vdocuments.mx/maggi-noodles-marketing-plan.html

https://studymoose.com/marketing-mix-strategies-for-maggi-essay

http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/8145/13304132_BBA.pdf?sequence=1
&isAllowed=y

https://wlifemediadotcom.wordpress.com/2019/01/15/a-study-of-consumer-behaviour-on-maggi-i
nstant-noodle-products/

Answer 7

https://vdocuments.mx/43379925-maggi-noodles-marketing-plan.html

https://2012books.lardbucket.org/books/marketing-principles-v1.0/s06-consumer-behavior-how-
people-m.html
https://www.mindtools.com/pages/article/newTMC_90.htm

https://www.essay48.com/case/44681-MAGGI-Noodles-in-India-Creating-and-Growing-the-Cate
gory-Porters-Generic-Strategies