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Marketing Management Term II 2012 -2014

Submitted to Prof. Srinivas Prakhya

Section D, Group 5 Agrim Kumar Aniket Ashok Karde Sanket Deshpande Khushal Dikha Satya Surekha Y S Sukrit Dhar Venkata Rakesh Kolli 1211245 1211247 1211257 1211270 1211297 1211306 1211312

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 Maggis market share: ............................................................................... 32 Our Recommendations: .................................................................................................................... 33 Improving the dal atta variant: ..................................................................................................... 34 Section D, Group 5 Page 2

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

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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 Maggis 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 1980s, 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, Indias 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. Nestls 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. Maggis 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 noodles 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 - Dont be a noodle, be a smoodle was the ad that brought Top Ramen into the Indian market. It was launched in 1991 The brands 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.
ITCs 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. Chings 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 Maggis 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 Maggis 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

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 416 years, attracted to the product because of its taste. Youth also like eating Maggi because they like its taste and dont like putting much effort to prepare food. Working Professionals value the product mainly because of its ease of preparation, taste and time factor. 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.

Company

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 dont want to spend much time in cooking food and want something that is easy to make and tastes good.

Marketing strategy Company Analysis Details

SWOT Analysis: Section D, Group 5 Page 13

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

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.

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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 companys 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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Product

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.

Price

Maggi is using low cost leadership strategy to capture and retain a large market share.

Place

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. Currently promotions through TV advertisements Awareness Campaigns Promotional campaigns in schools Free samples on buying some other products

Promotion

Hypothesis Formulation
Based on our qualitative analysis and consumer interviews we came up with some hypothesis:

Hypothesis I
One of the main reasons for Maggis 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.

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Hypothesis II
Another important reason for Maggis 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 Maggis 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 dont 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 dont 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 wont 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 dont 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 wellrecognized 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 Maggis 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 thats why people consume them less as compared to Maggi.

We also collected information from IIM Bangalore mess about Maggis 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 dont 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 Maggis 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 thats 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.

What movie is playing in PVR?

Aspiring
I like fast food

Kids

Tasty Fun Loving

Indian Roots & Dont Western appeal


Urban

On the Go

Hang out with friends Fixed pocket money masti

Seeks variety

Newly wed
I want to impress my in laws

Romantic Getaways

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 kids 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 cant 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 dont 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.
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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 0 1 4 0
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The results of the survey were analyzed further to obtain a perceptual map along each of the attribute vectors: Perceptual Map

Perceptual Map - Noodles


Chings Quality Axis 2 - Explained variance = 21% Taste

Variety Sunfeast Yippee Top Ramen

Maggi Generational Availability

Ease of Preparation Health Value for money

Horlicks Foodles Axis 1 - Explained variance = 63%

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.

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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 Maggi Top Ramen Chings Sunfeast Yippee Horlicks Foodles Average

Rating 4.6 3.8 2.6 3 3 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))


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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 Maggi Top Ramen Chings Sunfeast Yippee Horlicks Foodles Average

Rating 4.5 3.0 2.4 3.4 3 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.

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Hypothesis III: Health and Safety Advantage


The following table summarises the various ratings given to the various noodles brands based on health advantage:

Brand Maggi Top Ramen Chings Sunfeast Yippee Horlicks Foodles Average

Rating 3.4 3.3 3.4 3.6 4.1 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.

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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 Maggis 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 Nissins topramen was launched in 1988 in India , till today its share limited to single digit.

Can yippee be threat to Maggis market share:


Though instant noodle segment is growing at 20 percent per annum, Maggis share of market has gone to 80 percent while competitors like ITCs 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
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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 kids 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 Maggis packets to make it look more bright and colourful to attract kids

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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 doesnt 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 Maggies 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.

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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, Maggis 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.

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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
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have it always. Sometimes for a change is OK. But, I dont 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?

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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 dont 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 havent 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 wont affect you adversely. Maggi has become the equivalent of noodles. You dont 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.
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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. Its like I dont 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 dont 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,
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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 moms food taste at home.
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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. Thats 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 Ramens 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. Thats why it is available at lesser price and everywhere. Sunfeast Yippee is fine, but it looks like a kids 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
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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 Ramens 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.

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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. Thats 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
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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.

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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.

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?

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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 Cost Taste 4 5 Top Ramen 4 4

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Availability Brand Name Trust Health

5 5 5 2

4 3 3 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.
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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.

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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 didnt 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 Cost Taste 4 4 Top Ramen 4 4 Knorr 3 4
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Availability Brand Name Trust Health

5 5 5 3

3 4 4 2

3 4 4 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?
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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 Doesnt taste good
Interviewer: Why havent you tried other brands (if only has tried Maggi or other brands)?

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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 Maggis 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
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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, Chungs


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 havent 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.


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Interviewer: What do you think are top 3 brands in the noodles market?

Maggii, Sun feast, Chungs


Interviewer: What is the single best feature of Maggi?

Fast to cook, easily available anywhere.


Interviewer: What do you think are Maggis 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 How many people are there in your family? Among them, who eats noodles? 1 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?
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He buys mainly for her daughter. His daughter likes noodles. His daughter is the main influencer. 4 5 6 When was the first time you had noodles (which brand) 2 years back, Maggi was the brand How did you come to know about noodles? TV Advertisements What do you look for while buying noodles (taste, health, fast cooking, price, convenience)? Price, fast cooking, tasty, evening snacks, vegetarian 7 8 9 Are you aware about other brands of noodles? Have you tried them? He tried other brands but taste wise he found no difference. What do you like about Maggi or other brand (whichever)? Maggi is tasty and price is cheaper, they give lot of offers If noodles were not there then what will you buy? Traditional South Indian food like upma.

Customer name : Anup,30 1 2 3 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. How often do they eat and how often do they buy noodles? Twice a week, 1 1/2 kg a month. 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.
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What do you look for while buying noodles (taste, health, fast cooking, price, convenience)? Convenience, Taste, Easy to cook

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 9

What do you like about Maggi or other brand (whichever)? Fascinated by masala Taste of Maggi If noodles were not there then what will you buy? Masala oats or Pasta

Customer name : Reshma, Housewife, 26 years old 1 2 3 How many people are there in your family? Among them, who eats noodles ? 3 people, All eat noodles- Reshma herself and her husband. 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. How many family members actually like noodles? Who influences your choice for noodles? All like noodles, all like yippee only. 4 5 6 When was the first time you had noodles (which brand) Sunfeast Yippee noodles, at her moms place. But calls it Maggi How did you come to know about noodles? Her brother introduced her to noodles. He prefers noodles mostly for food. 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 8 Are you aware about other brands of noodles? Have you tried them? Yes, tried them , but didnt like them 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.
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If noodles were not there then what will you buy? Semiyaa

Customer name : Amol, 24 years 1 2 3 How many people are there in your family? Among them, who eats noodles ? Living in PG accomodation. Buys for himself. Works in Accenture. How often do they eat and how often do they buy noodles? Twice a week, Weekly 5 standard packets of Maggi How many family members actually like noodles? Who influences your choice for noodles? NA. Bachelor. He buys for himself. 4 5 6 When was the first time you had noodles (which brand) In Mumbai, 4 years back, Maggi How did you come to know about noodles? Had it at friends place in Mumbai. He didnt know how to cook then. What do you look for while buying noodles (taste, health, fast cooking, price, convenience)? Easy to make (just boiling water needed) 7 8 Are you aware about other brands of noodles? Have you tried them? Have not tried other brands. Not interested. Likes only plain Masala Maggi. 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
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Do you like instant noodles? How frequently do you have it? How many
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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 5 What do you think are the top 3 brands in the noodles market? TopRamen, Maggi, yippee What do you think is the single best feature of Maggi/..? dislikes if any? Taste , he doest 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
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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.

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.

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 5

What do you think are the top 3 brands in the noodles market? Maggi, yippee, Top Ramen What do you think is the single best feature of Maggi? Dislikes if any? Easy to cook, The factor that she doesnt like is that maggi gets sticky if it is over boiled, It wont happen with yippee.

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.

Do you know someone who prefers a different brand / product? Why do think he prefers She said every one prefers Maggi

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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?

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Nestle is offering incentives to buy company products in bulk. This reduces the trades 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 trades 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.

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Appendix II
Survey Results: (Excluding telephonic)
Age

<25 25 - 30 30 - 40 >40
Gender

Male Female

Which brand comes to your mind first when you hear the word noodles ?

Maggi Top Ramen Chings Yippee Other


Which noodles brand do you most frequently buy ?

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Maggi Top Ramen Chings Yippee Other


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

Snacks Fun Tasty Other


Which Maggi product (if any) do you like most ?

Masala Maggi Chicken Atta Noodles Other


1 thing that you don't like about Maggi

Taste Health Price Other


What do you prefer most while buying instant noodles?

Taste Health Price Ease of Cooking Other


How many different brands of noodles have you tried ?

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1 2 3 >3 None
Does Maggi taste better than other instant noodles brand ?

2 14 16 25 0

Yes No Can't Say

Do you think Maggi tastes better than ethnic Chinese noodles as available in restaurants ?

Yes No

28 29

Have you ever shifted from one noodle brand to another ?

Yes No

21 35

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 ?

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Maggi Sunfeast Yippee Top Ramen Foodles Chings Other

What do you think is the best product in terms of taste ?

Maggi Sunfeast Yippee Top Ramen Foodles Chings Other

What do you think is the best product in terms of quality ?

Maggi Sunfeast Yippee Top Ramen Foodles Chings Other


What do you think is the best product in terms of health ?

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Maggi Sunfeast Yippee Top Ramen Foodles Chings Other


What do you think is the best product in terms of ease of making ?

Maggi Sunfeast Yippee Top Ramen Foodles Chings Other


What do you think is the best product in terms of value for money ?

Maggi Sunfeast Yippee Top Ramen Foodles Chings Other


What is your 2nd preferred noodles brand?

Maggi Sunfeast Yippee Top Ramen Foodles Chings Other

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What do you think is the single most important thing which distinguishes Maggi from others ?

Taste Price Quality Availability Health Generation Old Variety Ease of preparation Other

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