Consumer Behavior Maggi

Submitted by:
Pooja Awasthi Mitali Balani Mihir Karve Meeta Khatri Aniket Sharma Ami Vora

Various products by Maggi

Introduction
A Nestle brand Products - Instant noodles, sauces, soups, cooking aids, instant pasta, etc. Generalized name for instant noodles in India Dominates the estimated Rs 1,300-crore instant noodles category in the country with 80% share Maggi is competing with Heinz Sauces and Ketchup, Knorr Soups, Kissan Sauces and Ketchup, Top Ramen, Sunfeast Pasta

History of the Parent Company Nestle

Nestl began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in Penang It is the largest food company in the world measured by revenues and the worlds largest and most diversified food company Some of the famous brands of Nestle are NESCAFE, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID, NESTEA, NESTLE Milk, NESTLE SLIM Milk, NESTLE Fresh 'n' Natural Dahi and NESTLE Jeera Raita. Nestle India Limited (NIL) is the market leader in Indian Noodle Market with its Maggi Brand of Noodles and came in India in the year 1982 The company is acknowledged among Indias most respected companies and among the top Wealth Creators of India

History of the Brand - Maggi

MAGGI is a Nestlbrand of instant soups, stocks, bouillon cubes, ketchups, sauces, seasonings and instant noodles. It was founded by the Maggi Family in Switzerland in the 19th century and merged with Nestle in 1947 At the onset, Maggi targeted working women, but after conducting a research, it shifted its focus and targeted children and their mothers.

The Journey

1997: NIL changes the formulation of Maggi noodles, which proves to be a mistake as consumers do not like the taste of new noodles 1999: Maggi reintroduces the old formulation, which helps revive sales

2000: In early 2000s, Maggi is the leader in instant noodles space

2009: Maggi celebrates 25 years of Maggi Noodles with 'Me and Meri Maggi' interactive campaign. Launch of Maggi Pazzta 2012: Amitabh Bachchan is the new brand ambassador for Maggi

Survey Objectives
How do customers perceive Maggi as a stable brand, their perception of Maggi and how do they associate themselves with Maggi? Are the consumers aware of Maggi Brand or they associate Maggi with some other brand? Do they consider noodle as a healthy product or are they aware of the companys strategy of repositioning it to a healthy product by the launch of some of the new products?

Which product from the entire basket of Maggi products do the consumers consider as the best selling product for Maggi and to which the consumers frequently buy?

Primary Research

Maximum respondents said they remembered the ad with Amitabh Bachchan in it. The second most remembered ad was Meri Maggi ad where the consumers tell their magi story. This shows the influence of having a celebrity endorser in the first and second connecting emotionally with your consumer. (frame it better)

Analysis of the Primary Research

The survey is based on the feedback provided by 45 respondents. People do buy instant noodle packs and its very much a part of their routine.

Maggi is still the Top of the mind brand when associated with the word Instant Noodles.
96% of the respondents confess to have been Maggi Loyalists and to the hesitation felt while opting for a different brand on non availability of Maggi. Its also the most trusted brand. The brand information is communicated to the target audience by Television commercials which run various campaigns like Main aur Meri Maggi/ Kushiyon Wali Maggi (starring Amitabh Bachchan). Based on preference, respondents ranked Masala cubes their top preference closely followed by Noodles, across categories.

 Amongst the noodle category, Maggi Masala is still the most preferred flavour, even when offered cuppa Noodles. Respondents are even well aware about the Parent Brand Nestle, which again restates the fact that commercials are effective. The dependency of brand only on TV commercials, affects its reach and this is evident in the fact that only 56% respondents remember coming across a commercial of the brand. For the first time Maggi introduced a celebrity Amitabh Bachchan in their commercial. This instantly hit the chord with rural and urban audience in their Kushioyn Wali Maggi with Rural Village and Hostel Story. Closely followed by Main aur Meri Maggi story, which emotionally enticed the audience. The packing is a hit with the audience though 24% respondents dont seem to like the pack size. This could also be with reference to increased prices and reduced size of the packs. Brand personality of Maggi amongst its users is someone thats fun to be with, as its taste is unadulterated over the years.

Swot Analysis
Strenghts
Market leader in their segment Strong brand loyal consumer base Wide range of distribution channel Product according to the need of Indian consumer Innovative Product.

Weakness
Product are dependent on each other. Not so much presence in rural market.

Opportunities
Increasing numb er of working youth Shift to rural market Changing preference of consumer towards Chinese food and fast food. Can foray into other food markets with its strong Brand name

Threats
Price war with competitors. Strong presence of regional competitors Consumers dont perceive it as a Healthy Product

Consumers Decision Making Process - Maggi A. Problem Recognition

I. Nestle Identified the need for a quick snack in India. -- Adopted first mover strategy Launched Maggi Noodles in 1982 II. Recognised consumers need for Maggi in different sizes. --Launched 50gms, double pack and super saver pack III. Recognised consumers need for healthy instant snack
-- launched Maggi Atta Noodles and Maggi Dal noodles

B. Information Search
Personal sources, commercial sources, public sources & experiential sources. Maggi established brand : popularity through word - of mouth Mass advertising campaigns : good alternative for a quick snack

C. Evaluation of Alternatives
List of brands & Criteria for selection

Beliefs & attitudes : Greater awareness

D. Purchase Decision
Evaluation based on brand, dealer, payment method, quantity & timing. Maggi adopts: -- Mass distribution strategy easily available at any grocery store -- various pack sizes -- affordable pirces -- caters to each segment

Ad Campaign
PRINT ADS

Does not focus heavily on print media. During its launch since its initial target audience was mother and kids, ads were used to highlight the convenience factor of maggi. Recently maggi came out with advertisements in some weekly magazines for its new atta noodles and rice noodles varients. Maggi rice noodles mania had the highest column centimeter in print among the instant food category. Growth in noodles/pasta print advertisement grew by 42% share in 2010. Maggis expenditure on print media is much lower compared to other media.

TV Ads

Initially maggi was targeted at the workingwomen and later the upper-middle class kids. Maggi was a sponsor for Hum Log, a popular television show on Doordarshan, Indias sole channel in 1984. Maggi is now targeting its products at the entire family and not only kids. It recently launched Main Aur Meri Maggi campaign in commensurate of 25yrs of maggi in India.
DISPLAY

Large pack sizes at the top with decreasing pack sizes as going downward. This is because that for a retail outlet the more value is generated large pack thus they try to project big size at convenience place

SALES PROMOTIONS To introduce new products To attract new customer and retain the existing ones To maintain sales of seasonal products To meet challenge of competition tools Exchange schemes Price Off offer Scratch and win

PUBLIC RELATIONS The Maggi Club the children under 14 were invited by press adv and distribution of leaflets, to become a member of maggi club by sending logos cut from 5 empty maggi wrappers. Maggi projected it as maggi-clubbers are fun loversand intended to use it as reference group. Benefit offered to maggi-clubbers are various games like Snap Safari game, Cap and Masksets, Travel India game, Disney Today Comic.

To obtain each gift the member had to send 5 wrappers as purchase proof. Some special privileges were given to regular members from time to time like, discounting tickets of Appughar. It also Organised maggi school quizzes and sketching.

STPD Analysis
Segmentation On the basis of lifestyle and habits of urban families Targeting Kids, Youth, Office Goers and Working Women falling in the category of convenience-savvy time misers, who would like to get something instant and be over with it quickly.

Positioning Maggi has positioned itself in the snacks category. Developed a brand image of instant food products with statements such as 2 min noodles and Easy to cook, good to eat. POP Instant Noodle Category. Hygienic Tasty when added with vegetables and other add-ins
POD Market leader 2 minutes noodles and Enjoy the difference.

Demography & Psychography of Consumers

Demography 1) Age and sex: people of different age groups consume Maggi products. Children, teenagers, adults as well as old people consume them. Both genders male and female consume them. 2) Income: Maggi products are available at reasonable prices. So the lower, middle as well as the higher class consume them. 3) Religion and nationality: Maggi products are famous and are consumed by people of all religions and nationality. Psychography 1) Attitude: Consumers of maggi have a positive attitude towards the product, which makes it the leader in the market. Maggi dominates the market. 2) Lifestyle: Lifestyle determines the way of living of people. It describes how a consumer leads his life. All consumes Maggi products.

Brand Prism

Consumer behavior analysis

Problem Recognition Nestle after carefully analyzing 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 consumers 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, consumers 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.

Information Search

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.

Maggis 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.

Evaluation of alternatives 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.

Purchase 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.

Factors affecting consumer behavior

Internal Factors

External Factors

Market Penetration Strategies

Maggi started with promotional campaigns in the school to see the reaction of children after eating Maggi. Started their advertising focusing straight on kids. Introduced new products like Atta noodles Dal Atta noodles Cuppa mania. Products were made available in different packages. Kept on conducting market research to understand the changes in the market.

Michael Porters Five Forces Model

New entrants Top Ramen Horliks foodles Sunfeast Pasta

Suppliers Distributers Raw material Packaging

Industrial Rivalry Top Ramen Horliks foodles Chowmein etc.

Buyers Customers mind set Brand Image

Substitutes Fast Food Soups Pasta

These print ad`s are aimed at increasing consumer involvement in the product

Print ad for launching a new flavor

The brand is creating a perception of taste for the consumer by correlating it with functional aspects of the product

 The recent KHUSHIYAN campaign

Using facebook to promote the product aswell as conduct a contest to increase consumer involvement

 Maggie does not believe in celebrity endorsements and uses real people in their ad campaigns The recent KHUSHIYAN ad was an exception with Bollywood mega star Mr. Bachan endorsing it

Market Share of Instant Noodles

Market share

Industry size1300cr Others-Nissan Top Ramen, cuppa noodle ITC Yipee (sunfeast) HUL Knorr soupy noodles Smith & Jones Chings GSK Horliks foodles

15

Maggie Others 85

Some Quotes
The Economic Times, a prominent newspaper in India, in 2003. "Maggi is the leader in the Instant Noodles category because it is constantly improving its understanding of the consumer to give them excellent and tasty products that provide nutrition, health, and wellness. Martial Rolland, chairman and managing director, Nestl India Ltd., in 2006. "Maggi has managed to enter Indian homes to change the traditional food habits of Indian children on their promise of convenience. This brand has understood the psychology of Indian mothers and positioned itself for mother-child indulgence.

Perceptual Mapping

BCG Matrix

Ansoff Matrix

AIDA Model
Attention
Typical promotion, commercials, print ads, billboards, contests, etc. The element of an advertising copy is necessary to grab attention of the prospects and direct their attention towards the wide range of Maggi products

Intention
Making people buy the product by peaking interests, both emotionally (feel good commercials) and physically (prepares your meal instantly) It can be described as the stage wherein the prospects are inclined to buy Maggi products Cuppa noodles

Desire
Convincing customers that they want and desire the product and that it will satisfy their needs. Tell the prospects how exactly they would benefit from using your products. In case of Maggi, the instant desire that can be fulfilled is quenching hunger Mein aur meri Maggi

Action
Leading customers towards taking action and or purchasing. You have gotten their attention, hooked their interest, and created a desire. This is where they actually go ahead buying Maggi products Maggi CLubs

Challenge
According to market experts Nestle India Limited's Maggi noodles which has been dominating the instant noodles market in India for nearly three decades However, it is currently witnessing tough competition with a number of new entrants such as Hindustan Unilever's (HUL) Knorr Soupy noodles, GlaxoSmithKline's Horlicks Foodles, Top Ramen and Big Bazaar's Tasty Treat. Top Noodle Brands in India Maggi Sunfeast Smith & Jones Ching's Top Ramen

Recommendations
Maggi as a brand is well engrained in the minds of Indian consumers, its association with noodles is three decades long and the brand exploited approximately 70% market share until 2010. Maggi not just introduced a brand but also a novel product instant noodles. But in 2010, the market saw the sudden infuse of instant noodles with introductions such as, Nissin Groups Top Ramen, CG Groups Wai Wai, ITCs Sunfeast Yippie and GSKs Foodles. Following are some recommendations which could be adapted to sustain the change: For combating the competition, the brand needs to first fight the sticky texture, as many school going children carry Maggi in their Lunch boxes and thus the mere stickiness gets associated to unhealthy quotient. Introduce variants targeted for youth, a pack with added vitamins. Today too many Hostelites prefer Maggi as their second meal. This concept could be tapped. Reinforce their association with the people, Main Aur Meri Maggi a campaign which was an instant hit needs a quick redo to engage the masses. The last very obvious factor is the reducing size and rising price of the pack, hence they should come out with combo offers, since this will induce sale and also yield trials.

Conclusion
Huge potential for expansion and growth with around 90% of untapped market. Gap between customer expectations and companys perception towards product diversification lost Maggi its share during the late 1990s. Came back with the original formula with free sampling campaign. Current Status Market Value:160-170 Crore(2008) Contribution to topline- 8-9% cope for expansion in noodles market is quite positive with the current market of only 300 crore.