CONSUMER BEHAVIOR OF INSTANT NOODLES MAGGI

PRESENTED TO:
DR. ALI ASKARI
(Course Supervisor)

SUBMITTED BY: GROUP 4

BENISH KHAN (08)
FARAH NAZ (18)
IQRA GHAFOOR (24)
SANA IQBAL (53)
TALAL SHOAIB (37)
ZAINAB FARRUKH (72)

MARKETING RESEARCH
Course no:
MBA III
DATE OF SUBMISSION: 24-05-2014
Karachi University Business School
University Of Karachi

S.No.

Topics

Page No.

1. ACKNOWLEGEMENT ........................................................................................................................ 4
2. EXECUTIVE SUMMARY ................................................................................................................... 5
3. KNORR: ................................................................................................................................................ 8
4. MARKET SCENARIO AND CHALLENGES: .................................................................................. 16
5. MARKETING AND PROMOTION STRATEGIES BY MAGGI AND KNORR: ........................... 16
6. EVOLUTION IN COMMUNICATION ............................................................................................. 17
7. LITERATURE REVIEW .................................................................................................................... 18
8. HYPOTHESES: ................................................................................................................................... 21
9. RESEARCH PROCESS: ..................................................................................................................... 21
10. METHODOLOGY: ............................................................................................................................. 23
11. LIMITATION: ..................................................................................................................................... 24
12. Descriptive Research ........................................................................................................................... 27
13. Quantitative Research .......................................................................................................................... 27
14. DATA ANALYSIS:............................................................................................................................. 39
15. FINDINGS: .......................................................................................................................................... 39
16. CONCLUSION: ................................................................................................................................... 40
17. RECOMMENDATIONS ..................................................................................................................... 40
18. References ............................................................................................................................................ 42
19. BIBLIOGRPHY ................................................................................................................................... 43
20. APPENDICES ..................................................................................................................................... 44
21. Annexure A Questionnaire ............................................................................................................... 44
22. Annexure B Z table ........................................................................................................................... 47

ACKNOWLEGEMENT
All glories and honours are for Almighty ALLAH, who bestowed us with profound perseverance and ability
to accomplish this work.
We would like to take this opportunity to thank and to express our profound gratitude and deep regards to
our Professor Dr. Ali Askari for his exemplary guidance, support and constant encouragement throughout
the course of this report.
We also take this opportunity to thank all the group members and friends for their cordial support and
cooperation without which working on this report would not have been successful.
We are highly obliged to our teachers and all sentient beings for the valuable information provided by them
in their respective fields. We are grateful for their cooperation during the period of our research.

Finally, we sincerely thank to our parents and family, who provide the advice and financial support. The
product of this research report would not be possible without them all.
This acknowledgement is a way where we can actually thank the people who have been instrumental in the
making of this research report and without their contribution, working on this report would not have been
successful.

EXECUTIVE SUMMARY
This report of marketing research is focusing on marketing and promotional strategies on the brand
performance of two products based on customer experiences and how they are influenced by the
performance. The brands on which we have conducted our research are from the instant noodles sector of
Pakistan, these are Maggi and Knorr. By studying the Maggi in comparison to Knorr we are able to find out
the factors that will affect the market share of Maggi. Our main objective of research is how the strategies
play the vital role to increase the market share and brand image of Maggi as compare to Knorr which is also
our research hypothesis. So by conducting questionnaire based interviews with the consumer of both the
products we aim to pin point the most competitive marketing strategies. In our research we have collected
primary data through surveys and developed the questionnaire to gather the data we needed to achieve our
objective. For secondary data we have used websites and articles to get the right direction. We have
summarized the respondents experiences and performances of both the brands in forms of charts, graphs
and pivot tables. In the end we have analysed the results and suggested the recommendations. From our
survey research, we have found that 48% of the respondents prefer Maggi noodles over other brands of
instant noodles, and according to 86% of respondents Maggie noodles are affordable. Most of the
respondents want increased quantity in packets. We have found that television advertisements are a major
factor in purchase decision compared to other mediums. From our data analysis and interpretations, our
recommendations for Maggi brand are that price and taste are the most important factors, so to launch
different sizes of packets in all variants for those who cannot afford high prices, must be in action plan of
Maggi. Maggie should bring innovation in product, packaging and pricing through investment in market
research. They must also launch health awareness campaigns; publish health information etc. to educate the
customers about benefits of healthy foods. Maggi should focus on the kids for its promotions and advertising
activities like Knorr gang adventure. Maggi should focus on frontal strategies by improving their product
quality and quantity and by effective promotion. From our survey research we have found that majority of
consumers in Pakistan prefer Knorr and Maggi for instant noodles while rest of the brands have a very low
relative market share like Shan's Shoop noodles and others.

INTRODUCTION:
This report of marketing research is on the topic of Marketing and promotional strategies on the brand
performance. It is the study of brand image and market share of two products based on customer experiences
and how the marketing and promotional strategies have influenced their performance. The brands on which
we have conducted our research are from the instant noodles sector of Pakistan, these are Maggi and Knorr.
Maggie has been serving the market since 1992 in Pakistan, interestingly, Maggi in spite of being the
pioneer in this category and the market leader in many countries internationally takes second place to Knorr
which is the market leader with a 45% market share. Maggi presently has a 40% market share, with the
remaining small percentage taken up by Shan Shoop and some other imported brands such as Indomie
(From Indonesia) and others.

TRENDS
A noodle is not a traditional part of Pakistani cuisine, but showed rapid growth over the review period and
became very popular because it is easy to prepare within minutes. Due to the busy lives of urban consumers,
they prefer a quick and convenient meal which was provided by noodles. It continued to become popular
among children and the younger generation as a mini meal with many flavours such as masala and chicken.
The Brand Maggi is strongly established as a Family Brand with crisp brand equity in Pakistan market. The
brand has always been known to have the first movers advantage in the portfolios like noodles, ketchups,
soups, sauce, etc. The parent brand Nestle has been the strong symbol of family, shelter and warmth which
brand Maggi has innovatively capitalized.

PROSPECTS
As the economic conditions improve over the forecast period, noodles will continue to experience growth
led by the increasing appeal among urban consumers and consumption among rural consumers. Due to
wider distribution and marketing in smaller towns and villages, volume sales are expected to record steady
growth as noodles is a quick and convenient snack, which most consumers are aware of and understand that
it can be taken as a mini meal which needs less consumption time.

PURPOSE OF STUDY
The purpose of this research is to find out the factors and variables that will affect the market share of
Maggi. By studying the Knorr in comparison to Maggi and conducting interviews and questioners filling
with the consumer of both the products we aim to pin point the most competitive strategies.

STATEMENT OF PROBLEM:
The research presented here addressed the problem of how to increase revenue and market share of Maggie
Noodles in a competitive market of Pakistan.
In 2013, Unilever Pakistan Ltd and Nestl Pakistan Ltd will remain as leading players in noodles, where
Unilever Pakistan Ltd is set to lead with 45% value share and Nestl Pakistan Ltd will closely follow with
40% value share. The two companies offer a variety of flavors appealing to the local palate, and were
available across retail outlets.

RESEARCH QUESTION:
Below is the research question:
Will the marketing and promotion strategies play the vital role to increase the market share and brand

image of Maggi as compare to Knorr?

RESEARCH OBJECTIVE:
The specific objectives of research are to answer the following questions:

Role of strategies to increase the market share of Maggie

What are the consumers attitudes towards instant noodles?

To identify the attributes where Maggie lags with respect to competition

To evaluate customer expectations from instant noodles on certain parameters

To find the gaps between customer preferences and present offerings of Maggie

What marketing and promotion strategies will focus by Maggi to increase its market share and brand
image than Knorr?

All the survey questions would be able to contribute to answering these questions by revealing consumers
attitude towards instant noodles: brand loyalty, satisfaction, preference and their purchasing routines.

HISTORY OF KNORR

Knorr is a German food and beverage brand own by company Unilever since 2000. Knorr was founded in
1838 by Carl Heinrich Theodor Knorr. Knorr headquarters is in Heilbronn. It is a Germany product
previously sold under the Lip top brand are now being absorbed into the Knorr product line, with annual sale
topping dollar 3 billion. Knorr is Unilever biggest selling brand. The Knorr brand offers a wide range of
soups, stock cubes, sauces, and make meal time a nutritious, easy and enjoyable experience for everyone.
Knorr discover new ways to make their meal memorable, with new ideas and clear product. During the 20
century, they have launched several new and exciting products throughout the world - Knorr soupy noodles
in India, Knorr stock pots in South Africa, Knorr soup across Europe America. The success of Knorr food
can be summarized by describing its quality food that embraces sustainability.

KNORR:
Great flavour is at the heart of the Knorr brand. Thats why Knorr go the extra mile to work with some of
the best chefs around the world to develop authentic and nutritious meal
solutions.
Established as early as 1873, Knorr was created with the purpose of providing
high quality dried soups. Carl Heinrich Knorr, born in 1800, created the
company from knowledge acquired during his time as a wholesaler of
agricultural goods. He died 2 years after the company was founded but his
legacy lives on as Knorr is known today for chef men ship and great tasting food.
Knorr came to Pakistan in 1992 with the launch of Knorr Chicken Cubes. In the
passing years Knorr introduced multiple Savoury and Meal Maker categories.
Knorr believe that cooking delicious and nutritious food should be in every womans reach. It is this
love and passion for flavor, that drives us to go the extra mile to ensure each dish you create, delivers
great taste.

CUBES:

Chicken Cubes

Pulao Cubes

KETCHUPS:

Tomato
chili garlic

NOODLES:

Soupy Noodles Chicken Delite

Soupy Noodles Mast Masala

Noodles Chicken

Noodles Chatpatta

Noodles Sizzler

Noodles Jalapeno

Noodles Lemon Chili

Noodles Chin Chow

Noodles Hot & Spicy

SOUPS:

Chicken Corn Soup

Hot & Sour Soup

Chicken Ginger Soup

Cream of Chicken Soup

Cream of Tomato Soup

Chicken Mushroom Soup

Chicken Yakhni

HISTORY OF MAGGI

Maggi is an international brand of instant soups, stocks, bouillon cubes,

ketchups, sauces, seasonings and instant noodles. Owned by Nestl since 1947, the original company was
founded in Switzerland in 1872 by Julius Maggi.
The brand is known for Maggi noodles, Maggi cube, and Maggi-Wrze (seasoning sauce).

Company History:
The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his father's
mill. He quickly became a pioneer of industrial food production, aiming to improve the nutritional intake of
worker families. Maggi was the first to bring protein-rich legume meal to the market, and followed up with a
ready-made soup based on legume meal in 1886. In 1897, Julius Maggi founded the company Maggi GmbH
in the German town of Singen, where it is still based today.
In 1947, following several changes in ownership and corporate structure, Maggi's holding company merged
with the Nestl Company to form Nestl-Alimentana S.A., currently known in its francophone home base as
Nestl S.A.
Today, Maggi is known throughout the world for its dry soups, seasoning sauce and instant noodle dishes. In
New Zealand, Maggi Onion Soup mix is often combined with reduced cream to create an onion dip for
potato chips that has come to be generally accepted as a Kiwi favorite.

Background:
In the last 20 years we have just asked 2 minutes of your time. The Brand which clearly comes to mind on first recall
is Maggi Noodles. Maggi Noodles is manufactured by Nestle under instant noodles portfolio. It was introduced with
Maggi 2 Minute Noodles in Pakistan in 1992 when the only place to get noodles was Chinese restaurants. Maggi
undoubtedly has been the lifeline of many teenagers when in home or away from home. Maggi, as a brand, has seen

10

many competitions in its Lifecycle. The brand has also diversified itself with launch of product ranges like soups,
tomato sauce, seasoning, cup noodles, various flavours of Maggi noodles like Atta, rice, maize grains etc.

MARKET SEGMENTATION
Market segmentation is a process of dividing market into different groups according to their needs,
behaviour and characteristics.
Following are the basis of market segmentation:
1.

Geographic: Dividing the market into different geographical units such as nations, state, regions,
countries, cities or neighbourhoods. Maggi operates globally.

2.

Demographic: Dividing the market into groups based on age, gender, family size, family life cycles,
income, education, religion, occupation and race.

Factors:
Age: They focus on all age groups but are a bit more inclined to children and teen agers.
Income: Maggi caters to all income groups. But Nestle believes that the lower class cannot afford
their products, so Maggi noodles are offered to the middle and upper class.
Occupation: youngsters such as teenagers, children and students are the main group of people who
preferably consume Maggi noodles.

3.

Psychographic:

Dividing a market into different groups based on social class, time

expenditure, life style or personality characteristics.

Factors:

Time expenditure: Maggi claims that it is a ready to eat and two minute cook meal. Mostly
customers prefer Maggi because of its limited time expenditure.
Social class : upper-upper class, middle upper class ,lower upper class, upper-middle class,
middle-middle class can easily afford prices of Maggi products.

TARGET MARKET:
As Nestle believe that the lower class cant afford the products of Nestle because of their low income and
considerably high prices. So the products of Nestle are not offered to the lower class but it is offered to the
middle and upper class.
The upper and middle class can afford the products of Nestle because the prices of Nestle products are
within the range of their approach.

PRODUCT POSITIONING:
Product positioning is all about positioning of the product in the minds of consumers. Nestle used heavy
advertising to do this. Also the name of Nestle was enough for the consumer to understand the quality of the
product.

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4PS OF MARKETING:
1.
2.
3.
4.

Product
Price
Place
promotion

1. PRODUCTS :
A product is anything that can be offered to the market to satisfy a want or need, including physical goods,
services, experiences, events, persons, places, properties, organizations, information and ideas.

NOODLES:
MAGGI 2-Minute Noodles:
It is one of the largest and most loved foodbrands that defines Instant Noodles in pakistan. MAGGI Noodles
is as tasty as ever and even provides essential nutrientsfor all stage of your life. With the goodness of Protein
and Calcium,MAGGI Noodles is available in 4 delectable flavours.MAGGI NOODLES are available in four
delicious flavours: Chicken, Chatkhara, Masala and Lemon Chaska.

MAGGI VEGETABLE ATTA NOODLES:

An offering that exemplifies Taste Bhi Health Bhi, MAGGI Vegetable AttaNoodles is tasty because it is
loaded with everyones favourite MAGGI Masala and healthy because it now has more real vegetables and
is packed with the power of fiber.
These quick to cook instant noodles are tasty. Maggi noodle recipes which include vegetables go terrific
with this variant. Packed in these Maggiinstant noodles are dried real vegetables and fiber needed to make
digestive processes smooth.

SOUPS:
MAGGI HEALTHY SOUPS:
MAGGI was the pioneer of Instant Soups. The new MAGGI Healthy Soups have been carefully prepared
through the Research and Development efforts of Nestl Group and are even more delicious, quick to
prepare, convenient and healthy. MAGGI Healthy Soups contain real vegetables, are low fat, low cholesterol
and free from synthetic colours. These superior healthy soups are now available in an enhanced range of 12
delicious variants:

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Healthy Style
Rich Tomato Vegetable Creamy Chicken Masala Noodles
Chinese Style
Hot & Sour Vegetable
Sweet Corn Vegetable
Sweet Corn Chicken
Oriental Thai Noodles
Chef Style Cream of Mushroom Tangy Tomato Vegetable
Sweet n Sour Tomato Noodles

SAUCES:
MAGGI SAUCES:
MAGGI has a host of variants like: - The Rich Tomato Sauce. - The unique Hot & Sweet Tomato
Chilli Sauce and Oriental Chilli Garlic sauce.
Lip-smacking tastes and vibrant packaging make MAGGI Sauces true to its
slogan -It's different!

CUBES:
MAGGI MAGIC CUBES:
MAGGI Magic Cubes enhance the taste of your everyday dish, making it special for the entire family.
Available in two variants
Vegetarian Masala & Chicken

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2. PRICE:
Price of the companys product is considered as one of the 4 Ps of marketing. It is the most important
aspect for any company in terms of decision making as it directly affects the sales and profit of the company.
As we talk about Maggi, it is very popular now a day in all over the world and its main customers are
children and youngsters. As we know that MAGGI Noodles price is not very high, but there are so many
competitors in the market so company cannot set price different from their competitors. One advantage of
the company is that noodles packets are available in different size.
Current Maggi price is Rs.20/- only.

3. PLACE:
Place refers to the location where the products are available and can be sold or purchased.
Physical Distribution of Maggi noodles: To keep up with the growing trends in the Noodles sector, an
intensive dealer-distributor network is desired. Maggi has a well-established distribution network.

Maggi Distribution Network:

Maggi Factory

Factory Warehouse

Distributors

Wholesalers

Retailers

End Consumers

Thus from the chart it can be said that the distribution network is well spread almost everywhere in Pakistan,
as it is easily available in all local stores, retail store etc.

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4. PROMOTION
Promotion refers to the various strategies and ideas implemented by the marketers to make the end - users
aware of their brand. Promotion includes various techniques employed to promote and make a brand
popular amongst the masses.
Promotion of Maggi is done through the following ways:

Advertising
Print media, Television, radio and social media are effective ways to entice customers of MAGGI and
make them aware of the brands existence.
Billboards, hoardings, banners installed intelligently at strategic locations like heavy traffic areas,
crossings, railway stations, bus stands attract the passing individuals towards a particular brand.
Taglines also increase the recall value of the brand amongst the customers.

Word of mouth
One satisfied customer brings ten more customers along with him whereas one unsatisfied customer takes
away ten more customers. Thats the importance of word of mouth. Positive word of mouth about Maggi
goes a long way in promoting brand amongst the customers.

Sales promotion
The company also adopted sales promotion activity in order to achieve following mentioned objectives.

To introduce new products

To attract new customers and retain the existing ones

To meet the challenge of competition

Various Tools used

Exchange schemes
Price-off offer
Coupons
Scratch and win offer
Money Back offer

Several initiatives were also taken by Maggi Noodles or Retailers sales promotion. This can be as
follows

Maggi was distributed free in schools and offices to promote trial

Return gifts on empty packs
Maggi fun book and stickers with funky animal facts.

Public relation

The company also Organized Maggi school quizzes and sketching.

Different pages on Face book, twitter and other social links also promote and increase customer
relationships.

15

MARKET SCENARIO AND CHALLENGES:

Major challenge is to maintain and increase the market share of Brand Maggi in increasing market
with varied new entrants having strong market presence in other product variants.
To be increasingly viewed as the most preferred snack by new generation
Change of consumer taste from taste to health conscious
Chicken Flavor is the leading flavor in instant noodles in Pakistan
All new players have also introduced Masala flavor in their brand
Chatpatta or Masala is the second favored flavor followed by other flavors
Knorr Soupy Noodles claim to be healthy snack between meal for children
Need for elaborate Market research for Maggi Brand on attributes like Brand Image, Preferred Price,
Taste, packaging, Health, Availability, Ingredients, product variety etc.

MARKETING AND PROMOTION STRATEGIES BY MAGGI

AND KNORR:

Hot snacks, in particular instant noodles, have become a booming product category in Pakistan,
positioned as they are as the cheapest way for children to consume calories in a healthy meal option.
In Pakistan, the category was created by Maggi (Nestl) when the brand launched in 1992; Unilever then
followed with Knorr in 1993. Since then the category has seen steady growth and is currently valued at over
Rs 1.6 billion, with a volume size of 7500 plus tons. Knorr accounts for a 45% share of the market; Maggi is
the second biggest playerfollowed by Shoop (Shan Foods), a new entrant in the category.
Responding to the opportunity, both the major players (Knorr and Maggi) have been active lately. Knorr
recently launched two new flavours Chin Chow and Hot and Spicy. This is in keeping with Knorrs
strategy of launching two new flavours every alternate year to keep the brand dynamic. (In addition to these
new flavours, Knorr has a premium product line with a single variant called Soupy Noodles and a bestselling
range with two constant flavours: Chicken and Chatpatta.) Instant noodles are an exciting proposition for
children. Variants really help us maintain the excitement and drive instant noodles as top of mind for
children.
The magic of Knorr Noodles tells its success story when its aroma floats from every kitchen onto our dining
tables putting smiles on every face. Chatpatta and Chicken flavours are a favourite throughout Pakistan.
Over the years, Knorr has added more superb and mouth-watering variants like Chicken Jalapeno, Lemon
Chilli, and Chicken Sizzler to its Instant Noodles family. These have resonated very well among children
and mothers. In 2012, the brand launched a smaller noodle pack at a lower price point to reach out to more
consumers. Maggi promises a product with the right combination of iron, protein and carbohydrates.

16

MAGGI NOODLES also introduced two new noodle variants to delight our consumers who have
increasingly been asking for new and tasty flavours: Karara and Bar-B-Q.Although Maggi and Knorr offer
similar products, their marketing strategies diverge in their choice of audiences. Maggi is committed to
addressing mothers, while Knorr believes in talking directly to children. Along with ATL advertising, both
brands are trying to engage consumers in different ways. Maggi is reaching out through door-to-door
sampling and consumer valued Maggi promotions, while Knorr has been running an English-language
animated series called Knorr quest for the noodle pot to encourage healthy snacking since 2010. The
dramatic story telling, compelling characters with celebrity voiceovers and exciting animations in each of
the episodes make Knorr Noodles a distinctively fun brand for children.In 2012, this was changed to Knorr
Noodle gang Kay adventures and while the characters remain the same the series is in Urdu to appeal to kids
in the lower SECs in small towns and rural areas. This along with the launch of smaller packs suggests that
instant noodles will soon be more than a choice snack for the urban child.

EVOLUTION IN COMMUNICATION
Brand Maggi has changed its communication from convenience factors i.e.
Bas 2 Minute to Taste Bhi Health Bhi to stress on health factors along with taste and convenience.
There was a shift from women to children as their consumers.
To increase the Point of Purchase Sales, Maggi innovated in Shelf placing by placing Maggi in lower
shelves to increase the visibility by Kids who accompany their mothers to shopping.
Maggi was positioned as snacks for between meals to boost sales and attract new customers without
changing their conservative food habits during meal time.
Maggi also introduced contests for posting best recipes to be made with Maggi.

17

LITERATURE REVIEW
BRAND IMAGE
Branding is the entire effect that creates the memorable identity. The success of a product or service is based
on being perceived as unique. It is to make consumer believes you offer something exceptional. It has to
plant itself in the hearts and minds of customers. In other words, your brand is your image as seen from
the outside. Your brand is who you are i.e. your strength, your integrity and your reputation. (Stine.n.d.)
Nine Branding Principles includes:
i.
Keep it simple: one big and focused idea is best.
ii.
Word of mouth: it is the way most brands are build.
iii. Focused brands are more powerful: for this, you have to define your brand.
iv.
Differentiation is key: somehow, some way you must be different.
v.
The first brand advantage: in a category, it has a huge advantage.
vi.
Avoid sub brands at all cost: it loses uniqueness.
vii.
Perception versus quality: quality is important but not as critical as the perception of quality. It really
should not be an illusion.
viii. Be consistent and patient: building a strong brand takes time.
ix. Write out your brand definition.

PERCEIVED VALUE AND CUSTOMER ATTITUDE:

The maintenance of a portfolio of satisfied and faithful customers provides to the company an improvement
of its economic and competitive situation in the markets as well as an increase in the effectiveness of the
strategic operations developed (Ravald and Grnroos, 1996; Yang and Peterson, 2004). In this sense, loyal
customers increase the volume of sales of the company (Gwinneret al., 1998) and reduce the communication
costs of attracting new customers (Payne and Frow, 2005).
Perceived value is defined as the result of the comparison between perceived benefits and sacrifices by the
customer (Zeithaml, 1988; McDougall and Levesque, 2000).Perceived value might have an influence on
customer attitude, (Swait and Sweeney, 2000).

STRATEGIES FOR ACHIEVING AND SUSTAINING GROWTH:

Far too many companies fail to achieve their growth targets in revenue and profitability. However, the
probability of achieving profitable growth is heightened whenever an organization has a clear growth
strategy and strong execution infrastructure. One without the other impairs the probability of success
describes why and prescribes strategies related to increasing the probability of success ,customer focused
growth and executing growth strategies involving organization capabilities, leadership, performance
management.(liabotis, 2007)

COMPETITIVE ADVANTAGES
Market leaders those have strong brand image on consumer mind also depend upon uniqueness, they also
have some differential features from the rest of the competitors.
(Stine.n.d.)Some authors suggest brand equity helps make any product different from competitors
offerings, creates positive images in consumers minds, and helps organizations to prevent present market

18

share erosion during price and promotional wars and also by giving a firm time to respond to competitive
threats. (Tuominen, 1999). This is very important for product to make itself as a brand then they have to
make strategies and create perception among customers that there are no other products and services in the
market like you. (Stine, n.d.)
In todays highly competitive environment the goal of each organization is to defeat competition and win
new customers. Individuals who are holders of knowledge represent a tool for the generation of innovations.
Thanks to their personal creativity, their knowledge, skills and abilities it is possible to generate new
innovative ideas that will help organizations to achieve a competitive advantage. The 21st century is based
on knowledge, information and innovative economy. Organizations success depends on employees
knowledge, experience, creative activity and qualification and emphasis is placed on continuous learning
and research and development. Organizations can gain competitive advantage only by managing effectively
for today while simultaneously creating innovation for tomorrow.
In developing the firms marketing strategies and plans for its products and services, the manager must
carefully analyze the competition to be faced in the marketplace. This may range from direct brand
competition (which can also include its own brands) to more indirect forms of competition, such as product
substitutes
An important aspect of marketing strategy development is the search for a competitive advantage; something
special a firm does or has that gives it an edge over competitors. Ways to achieve a competitive advantage
include having quality products that command a premium price, providing superior customer service, having
the lowest production costs and lower prices, or dominating channels of distribution. Competitive advantage
can also be achieved through advertising that creates and maintains product differentiation and brand equity.
(Belch & A. Belch, 2003)
Author also suggests that there is no place for standardization; each project is unique. Its characteristic
features include flexibility, openness to changes, searching for information and resources in the external
environment, anticipation, creativity, experimenting and informal communication. (Hana, 2013)
According to Tidd et al. (2006) innovation contributes to achieving a competitive advantage in several
aspects. The most important characteristics of innovations include:

A strong relationship between market performance and new products.

New products help maintain market shares and improve profitability.

Growth also by means of non-price factors (design, quality, individualization, etc.).

Ability to substitute outdated products (shortening product lifecycles).

COMPETITIVE STRATEGIES:
Typically there are four types of market dominance strategies that a marketer will consider: There are
market leader, market challenger, market follower, and market niches.
The market leader is dominant in its industry. It has substantial market share and extensive distribution
arrangements. It is typically the industry leader in developing innovative new products and business
methods. (Sheremata, 2004)
Leaders are more likely to experience market share erosion and/or dethronement whenrelative to industry
challengersthey are less competitively aggressive, carry out simpler repertoires of actions, and carry out
competitive actions more slowly. Market share leaders are more profitable because they exploit economies
of scale and market power, as well as first mover and reputational advantages. (Ferrier et al., 1999)
Whereas, a market challenger in an organization is strong, but not a dominant position that is following an
aggressive strategy for trying to gain a market share. It typically targets the industry leader.
Challengers can successfully compete against dominant firms in network markets through innovation.
However, the type of innovation a challenger should compete with depends on characteristics of the market
and technology. (Sheremata, 2004)
Market challenger can use following strategies to gain market share and to attack its competitors:

19

Frontal attack
Flank attack
Encirclement attack
Bypass attack
guerilla warfare

MARKETING AND PROMOTION STRATEGIES:

When any organization wants success of its particular product, then it must follow effective marketing
strategies. The basic purpose of the marketing strategy is to provide unifying direction.
It specifically provides directions to any attractive development areas that are off limits, it clearly specifies
those areas where effort is to proceed and it adds any other direction appropriate and relevant to the firm.
(Crawford, 1972).Author also suggest that, this is also necessary for the organization to introduce new and
existing products with little modifications to attract new and existing customers more towards its product
and when they also wants to increase customers satisfaction level. (Crawford, 1972)
For any product to compete with other products, it is imperative to make effective advertising and marketing
strategies, because customer becomes more influenced by advertisements and other promotion tools in this
modern world. These changes in modern world are driven by advanced technology and creativity that led to
rapid growth of competition and help introductory products to take place and then maintain their position in
the market. (Belch & A. Belch, 2003)
Advertising and promotion are an integral part of our social and economic systems. In our complex society,
advertising has evolved into a vital communications system for both consumers and businesses. The ability
of advertising and other promotional methods to deliver carefully prepared messages to target audiences has
given them a major role in the marketing programs of most organizations.
Companies ranging from large multinational corporations to small retailers increasingly rely on advertising
and promotion to help them market products and services. . (Belch & A. Belch, 2003)

20

HYPOTHESES:
NULL HYPOTHSIS: The marketing and promotional strategies do not play any role to increase the
market share and brand image of Maggi as compared to Knorr.

ALTERNATE HYPOTHSIS: The marketing and promotional strategies play vital role to increase the
market share and brand image of Maggi as compare to Knorr.
Our research hypothesis is a two-tailed hypothesis.

RESEARCH PROCESS:
First we defined the research problem. Next we declared our research objective. The third step was to
develop the questionnaire to gather the data we needed to achieve our objectives. Fourth we prepared and
analyzed the results, determine the conclusions, and prepared the research report.

DATA COLLECTION PLAN

Primary data:
Primary data is a type of information that is obtained directly from first-hand sources by means of surveys,
observation or experimentation. It is data that has not been previously published and is derived from a new
or original research study and collected at the source such as in marketing.
In our research we have collected data through surveys and used questionnaires as the tool to collect the data
at different locations. Our survey is typically a consumers survey.

Secondary Data:
Secondary data is all the information collected for purposes other than the completion of a research project
and its used to gain initial insight into the research problem. It is classified in terms of its source either
internal or external.
There are enormous amounts of data that are collected every day by government agencies, universities,
private organizations, non-profits, think tanks, public opinion polls, and students. Some examples include
the U.S. Census Bureau, organizational records, surveys, newspapers etc. In order to use secondary data
for your research, you need to
1) Locate the data
2) Evaluate the data
3) Verify the data.
We have used secondary data to save our time and get the right direction for our research from sources like
websites and articles.

21

Population:
Target population for our research process includes consumers of instant noodles with in Karachi city.
Respondents are mainly the house wives and the students as;

Instant noodles formed an important part of their menu specially in case of shortage of time

They also like instant noodles because of convenience of preparation

They consume noodles for snacks when they want to have a quick bite

Sampling Plan:
Our sampling plan includes:
a) Sampling frame
b) Sample unit
c) Sample size
d) Sampling technique
a) Sampling Frame:
A sampling frame is a collection of data from a sample; a technique is used when a population or data
sample is too large to be studied. The sampling frame used is usually selected by a survey planner. It is a list
of all those with in a population who can be sampled, and may include individuals, households or
institutions. The method however doesn't take all accounts of the population into study either because of
faulty frames or lack of an apparent frame to study.
Our sample frame is Karachi for this particular research.
b) Sampling Unit:
The sampling unit is the basic unit containing the elements of the population to be sampled. It may be the
element itself or a unit in which the element is contained.
Sampling unit in our research are the students of Karachi University and the people visiting shopping malls
located in Gulshan e Iqbal, North Nazimabad and Tariq road.
c) Sample Size:
Sample size is the number of observations used for calculating estimates of a given population. Sample size
determination is the act of choosing the number of observations or replicates to include in a statistical
sample. The sample size is an important feature of any empirical study in which the goal is to
make inferences about a population from a sample. In practice, the sample size used in a study is determined
based on the expense of data collection, and the need to have sufficient statistical power

22

Our sample size for this research is based on 105 consumers of instant noodles using Knorr and Maggie
noodles.
d) Sampling Method:
Majorly two types of sampling techniques can be used;
Probability sampling technique:
A probability sample is one in which the sampling units are selected by chance and for which there is a
known chance of each unit being selected.
Non- Probability Sampling Technique:
A non-probability sample is one in which chance selection procedures are not used. Samples are selected on
the basis of convenience or judgment or by some other means rather than the chance.
We select our sample using non-probability sampling method of Judgment and convenience sampling. We
select number of individual from our personal judgment and convenience
that we thought were
knowledgeable about the topic.
We recognized that the approach is not statistically valid, but we must balance that concern with our
requirements for obtaining relevant data given the cost and time budgets of the project.

RESEARCH APPROACH
Our general approach was to target a number of individuals with specific questions that we believed would
satisfy our research objective. The research team analyzed the results to identify potential opportunities and
risks for the Maggie noodles and also understand the perception and expectations of a general customer from
instant noodles.

DATA GATHERING AND ANALYSIS

As cleared from objectives of this study, the purpose of this research is how the strategies play the vital role
to increase the market share and brand image of Maggie as compare to Knorr, so more emphasis has been
laid on gathering such data that proved helpful for comparison among the companies performance.
a) Data collection Tool
For the collection of data a survey is conducted by providing a well-designed questionnaire that contained
Close ended and open-ended questions including multiple choice and dichotomous questions.
b) Data Proceedings:
We have summarized the respondents experiences and preferences of both the brands in form of Charts,
graphs and Pivot tables.

METHODOLOGY:
The research was carried out in the form of a survey. This will include primary research in addition to
secondary research as stated below. The survey research method was a descriptive research design. Each
respondent was provided with Questionnaire. The sample was selected by a non-random sampling method.
The survey will address the following information area:

23

Information Areas:
The objective as spelt out can be elaborated into specific information areas to be studied.

How do customers perceive Maggie as a stable brand, their perception of noodles and how do they
associate themselves with Maggie?

Are the consumers aware of Maggie Brand or they associate noodles with some other brand?

Do they consider noodle as a healthy product?

Which product from the entire basket of Maggie products do the consumers consider as the bestselling product for Maggie and to which the consumers frequently buy?

LIMITATION:

Respondents unavailability.
Time pressure and fatigue on the part of respondents and interviewer.
Courtesy bias.
The project undertaken needs a lot of secondary data so the availability and precision of this data
forms the major limitation as the biasness has to be minimized.
The results and conclusions of the project cannot be generalized in all area of an organization.
There was a shortage of time and resources for the functioning the operation.

24

RESEARCH

25

26

Descriptive Research
For the purpose of reaching to the right options with respect to the customers choices, we conducted a
survey on 105 consumers, of which 63 were females and 34 males.
The responses helped us formulate the right choices to put the questions for the respondents of the
quantitative research.
This research was carried out through a questionnaire (Annexure A). Our sample included 105 respondents.
The main information parameters in the questionnaire were brand positioning, customer loyalty, pricing,
quality and taste.
The responses are as follows:

Quantitative Research
1. Impact of attractive advertising on Maggi noodles

Do you think attractive advertisement may help Maggi to increase their sales?
Advertising
Advertising
May be
does not help
helps
Female
13.56%
8.47%
77.97%
Employed
7.69%
7.69%
84.62%
Housewife
66.67%
0.00%
33.33%
Student
10.81%
8.11%
81.08%
Unemployed
16.67%
16.67%
66.67%
Male
20.00%
11.43%
68.57%
Employed
15.79%
15.79%
68.42%
Student
25.00%
6.25%
68.75%

27

IMPACT OF ADVERTISING

Impact of advertising

May be
16%
Figure 1

Female
May be

Advertising does not help

Student

Employed

Unemployed

Student

Yes
75%

Housewife

Employed

No
9%

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Male
Advertising helps

Figure 2

Figure 1 shows that around 75% of consumers think that advertising the Maggi noodles brand
effectively creates an impact on products sale.
Figure 2, which shows the details according to the statuses of consumers, states that more than 80%
of females who are employed or students perceive advertisement as an important factor in
advertising the brand effectively. Similar patterns can be observed for males.

2. Affordability
Do you think that prices of Maggi are affordable?
Not Affordable
Female
25.00%
20,000 - 25,000
0.00%
above 35,000
50.00%
Male
0.00%
20,000 - 25,000
0.00%
25,000 - 30,000
0.00%
30,000 - 35,000
0.00%
above 35,000
0.00%

Affordable
75.00%
100.00%
50.00%
100.00%
100.00%
100.00%
100.00%
100.00

28

Is Maggi Affordable?
120%
100%
80%
60%
40%
20%
0%
20,000 25,000

above 35,000

20,000 25,000

25,000 30,000

Female

30,000 35,000

above 35,000

Male
No

Yes

Figure 3

Since this was an open-ended question, so we found different responses. Majority of the respondents (as
much as above 90%) said that Maggi noodles is affordable, A very few respondents said that Maggi is not
affordable. From the bar chart above, we can easily conclude that males having higher income perceive
Maggi as an easily affordable brand, while females having higher salary dont relate their incomes with their
purchasing powers. So we can conclude that pricing may not be an issue for Maggi purchasers.

3. Awareness of Maggis slogan

Do you know Maggis slogan?
Iska magic hi aur
Female
17.95%
Housewife
33.33%
19 to 25
50.00%
26 to 30
0.00%
Student
16.67%
19 to 25
16.67%
26 to 30
0.00%
Under 18
33.33%
Male
26.67%
Student
26.67%
19 to 25
30.77%
26 to 30
0.00%
Under 18
0.00%

Mitadobhook
2.56%
0.00%
0.00%
0.00%
2.78%
3.33%
0.00%
0.00%
20.00%
20.00%
23.08%
0.00%
0.00%

Taste bhi health bhi

79.49%
66.67%
50.00%
100.00%
80.56%
80.00%
100.00%
66.67%
53.33%
53.33%
46.15%
100.00%
100.00%

29

Recognition of Maggi Noodles

62.63%
24.24%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

13.13%

Total
Iska magic hi aur

Mita do bhook

Taste bhi health bhi

Figure 4

Recognition of Maggi Noodles

120%
100%
80%
60%
40%
20%
0%
19 to 25

26 to 30

19 to 25

Housewife

26 to 30

Under 18

19 to 25

Student

Under 18

Student

Female
Iska magic hi aur

26 to 30

Male
Mita do bhook

Taste bhi health bhi

Figure 5

Majority of male and female population is well aware of Maggi slogan as compared to slogans of other
brands.

4. Drive towards purchasing Maggi noodles

Why do you purchase instant Noodles?
Category
% of Responses
Convenience
11.88%
Hygiene
11.88%
No Idea
6%
Quality
20%
Taste
50%

30

WHAT FACTORS DRIVE YOU MOST

Convenience
TOWARDS PURCHASING NOODLES? 12%
Hygiene
12%
Taste
50%

No Idea
6%
Quality
20%

Figure 6

It can easily be seen from Figure 6 that half of the respondents emphasized on the taste of the noodles,
followed by quality (20%)

5. Most purchase noodles brands

Which brand of instant noodles you purchase
most?
Most purchased brands % of Responses
Knorr
43.43%
Maggi
48.48%
Other
1.01%
Shan Shoop
7.07%

Other
1%
Shan shoop
7%

MOST PURCHASED NOODLES' BRANDS

Knorr
43%

Maggi
49%

31

Figure 7

From our survey research, we have found that majority of consumers in Pakistan prefer Knorr and Maggi for
instant noodles, while rest of the brands have a very low relative market share like Shans Shoop noodles
and others.
Figure 7depicts that Knorr and Maggi have market shares almost somewhat similar to each other, unlike
other brands such as Shans Shoop etc.

6. Reason to purchase noodles

Availability
QUESTION#
5%
WHY DO YOU PURCHASE NOODLES?
(blank)
0%

Brand Image
9%
Diverse Range
1%
Other

Price
2%
Health
1%

Taste
79%

Figure 8

Why do you purchase noodles?

Female
19 to 25
26 to 30
30 or above
Male
19 to 25
26 to 30
30 or above

Availability
1.89%
2.44%
0.00%
0.00%
12.50%
15.00%
0.00%
25.00%

Brand Image
5.66%
7.32%
0.00%
0.00%
18.75%
15.00%
37.50%
0.00%

Taste
92.45%
90.24%
100.00%
100.00%
68.75%
70.00%
62.50%
75.00%

32

Reason to purchase noodles

150%
100%
50%
0%
19 to 25

26 to 30

30 or above

19 to 25

Female
Availability

26 to 30

30 or above

Male
Brand Image

Taste

Figure 9

Responses pertaining to this question suggest that majority of consumers in Pakistan emphasizes on taste of
the noodles

7. Do you know the price of a Maggi noodles pack?

Do you know the price of a Maggi pack?

Dont know the
price
25%
Figure10

Know the price

75%

Dont know the price

Know the price

33

Do you know the price of a Maggi pack?

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
20,000 25,000

25,000 30,000

above
35,000

20,000 25,000

Female
Dont know the price

25,000 30,000

30,000 35,000

above
35,000

Male
Know the price

Figure 11

It can be seen in figure 10 that 75% of the consumers are aware of the price of Maggi noodles. Figure 11
shows the same pricing parameter but the data are further segmented according to different salaried
consumers. It indicates that lower salaried males and females are aware of our brands price, while females
having salaries ranging from 25,000 to 30,000 are totally unaware of prices, unlike their male counterparts,
whose majority is aware of the prices. The figure also indicates that males having high income are
indifferent in this matter.

8. Ratings of different parameters

In this question, we asked a rating question from the respondents having the following parameters. The
ratings were from 1 (least important) to 5 (very important). Respondents were asked to rate each parameter
with different ratings.

Brand
Length of noodles
Taste
Variety of flavors
Price
Packaging
Non-stickiness
Ease of preparation
Availability
Health ingredients

We have found the following patterns:

34

Rating: Brand (1 to 5)

0%

10%

Most Important

20%

Important

30%

Indifferent

40%

Less Important

Least Important

Figure 12

Rating: Variety of flavors offered (1 to 5)

0%

10%

Very Important

20%

Important

30%

Indifferent

40%

Less Important

Least Important

Figure 13

Rating: Length of Noodles (1 to 5)

0%

5%

Very Important

10%
Important

15%

20%

Indifferent

25%

30%

Less Important

35%

Least Important

Figure 14

35

Rating: Price (1 to 5)

0%

5%

10%

Very Important

15%

Important

20%

25%

Indifferent

30%

Less Important

35%

Least Important

Figure 15

Rating: Packaging (1 to 5)

0%

5%

10%

Very Important

15%

Important

20%

Indifferent

25%

30%

Less Important

35%

Least Important

Figure 16

Rating: Non-stickness (1 to 5)

0%

5%

Very Important

10%

15%

Important

20%
Indifferent

25%

30%

Less Important

35%

40%

Least Important

Figure 17

36

Rating: Ease of Preparation (1 to 5)

0%

10%

Very Important

20%
Important

30%
Indifferent

40%

50%

Less Important

Least Important

Figure 18

Rating: Availability (1 to 5)

0%

10%

Very Important

20%
Important

30%
Indifferent

40%
Less Important

50%
Least Important

Figure 19

Rating: Health Ingredients (1 to 5)

0%

5%

Very Important

10%
Important

15%

20%

Indifferent

25%
Less Important

30%

35%

Least Important

Figure 20

37

It is evident from figure 12 that approximately 35% instant noodles consumers select Maggi because
of its Brand image and for only 05 % consumers brand image is of least importance.
Figure 13, exhibits that more than 35% consumers prefer Maggi because of its large range of flavors.
It is clear from Figure 14, that the length of the noodle cake is not a critical parameter for the
consumers in selecting noodles.
From Figure 15, we found that price of the noodles is one of the most important parameter for most
of the consumers.
Figure 16, shows that for most consumers Packaging of the noodles pack is important as it attracts
the consumer but it is also not a critical parameter for selecting noodles.
Figure 17, shows that for majority of consumers Non stickiness of noodles is very important because
of the reason that Maggi instant noodles dont get stacked to the pan or with each other; the
consumers can enjoy full flavor and quantity of Maggi noodles.
Figure 18, shows that many noodles consumers preferred magi instant noodles because of ease of
their preparation.
From figure 19, we found that as the market distribution of Maggi noodles is very high they are
easily available in many cities of Pakistan, especially in Karachi, it is one of the most important
parameter why people preferred Maggi noodles.
Figure 20, shows that majority of instant noodles consumers dont give preference to the health
parameters, for most of the consumers it is just important and many feels indifferent about the health
ingredients of Maggi noodles.

9. Suggestion to improve the quality of Maggi noodles.

Since this was an open-ended question, so we have got the various responses ranging from taste to quality
emphasis. A variety of respondents claimed that the taste of Maggi noodles is not up to the mark.
Furthermore, they should also include a variety of flavours like Chatpatta etc. So many respondents claimed
that Maggi should keep their taste and quality intact.

38

DATA ANALYSIS:
Statistical Analysis
z-testing

Maggi
Image

Formula Value
Table
Value
sig.(2.tailed)

at

5%

Brand Product
Strategy

Marketing Promotional Strategy

0.71

0.42

0.44

-1.96

-1.96

-1.96

From the above testing, observed value for brand image is 0.71 which lies in the accepted region related to
the table value of -1.96 so we accepts the null hypothesis that brand image of Maggi does not play any role
as compared to Knorr.
From the above testing, observed value for product marketing strategy is 0.42 which lies in the accepted
region related to the table value of -1.96 so we accepts the null hypothesis that product marketing strategy of
Maggi does not play any role in increasing market share as compared to Knorr.
From the above testing, observed value for promotional strategy is 0.42 which lies in the accepted region
related to the table value of -1.96 so we accept the null hypothesis that promotional strategy of Maggi does
not play any role in increasing market share as compared to Knorr.

FINDINGS:

48.48%of the respondents prefer Maggi noodles over other brands of instant noodles.
According to 86% respondents Maggi noodles are affordable.
According to 09% respondents Maggi noodles are unaffordable.
79.49% male and 53.33% female respondents are aware of Nestle Maggi slogan.
50%of respondents preferred Maggi noodles because of their taste
20% percent of the respondents purchase Nestle Maggi noodles for its quality
12%respondents buy Nestle Maggi noodles because of convenience to prepare them
12%respondents buy Nestle Maggi noodles because it is a hygienic product
06% of the respondents purchase nestle Maggi noodles whenever needed.
Television advertisements are a major factor in purchase decision compared to other Medias.
77.97% female consumers and 68.57% male consumers believe that advertising helps attracting
people more towards Maggi brand.
75% of consumers think that advertising the Maggi noodles brand effectively creates an impact on
products sale
75% of the respondents are aware of price of Nestle Maggi noodles.
The foremost influencer in purchase decision of the respondents is children.
35%respondents prefer Nestle Maggi noodles because of their property of non-stickiness.
For 40% of the respondents a vast range of flavors is one of the most important parameter in
choosing instant noodles.

39

Most of the respondents want increased quantity of noodles in packets. They want a large noodle
cake inside the noodles pack.

CONCLUSION:

Analysis Theme

Input for Strategy

Action Plan

Price and Taste are the most important Dont compromise on either of Launch different sizes of packets in all
factors, as peoples disposable income them
variants in mainly sub-urban areas, for
is slowly decreasing
those who cannot afford high prices of
chicken.
Consumers highly prefer quality and Ensure quality standards are met Increase incentives to keep the sales
easy availability
and increase availability
people motivated. Higher trade margin
to increase visibility
Taste is the single-most important Continue promoting difference in Launch BTL activities. Target schools
deciding factor in brand preferences
taste
and colleges and cafeterias to develop
the taste of consumers
Addition of new flavors
Ensure the addition of new Keep track of taste preferences of
flavors to retain consumers consumers. Come up with different sizes
interest in the product
of packs in variants like Chatpatta,
spicy, Thai flavors, Mexican flavors etc.
Health and hygiene
Never compromise on health Continue investing in technology and
standards
maintain the quality
Convenience is the key
Offer easier and more convenient Convenient packets: family size packs
solutions
Concepts are easily replicating in the Continue promoting difference in BTL activities such as promotional
industry
Taste and Quality
campaigns at institutions cafeterias and
canteens can be used for these

RECOMMENDATIONS
From our data analysis and interpretations it is concluded that the current marketing and promotional
strategies of Maggi is not effective and does not play any role in the brand image and in the market share as
compare to Knorr.After the conducted study following recommendations could be sited for Maggi Brand.

Product line extension with variants for varied markets.

To gain maximum leverage in terms of profit, the company should pay emphasis on teenagers.
Advertising is the key to success. Targeting these segments will not only enhance the companys
profit margins but also it will leverage the brand image of Maggi.
Innovation in Product, packaging and pricing of Maggi Noodles through investment in market
research.
Launching health awareness campaigns, publish health information, sponsor health camps etc. to
educate the customers about benefits of healthy and hygienic foods.
To gain more market share and brand image Maggi also should emphasize on effective marketing
and promotion strategies of products other than instant noodles like Maggi cubes, ketchups, soups
etc.

40

Maggi also should focus youngsters for its promotions and advertising activities, Maggi should
launch kids program like Knorr gang adventure. Its sales promotion activities would also be
increased by providing more incentives and gift items to children.
Mostly customers prefer chicken flavor in instant noodles so Maggi must introduce new and exciting
flavors range in chicken flavor.
Must change its packaging. Maggi should focus on its packaging and provide more attractive
packaging to its customers who would be more appealing to children and mothers.
Maggi should increase the quantity of its packets and should also provide packets of different sizes to
target families.
Maggi should focus on frontal strategies by improving their product quality and quantity by
effective promotion, advertisement and affordable pricing strategies.
Maggi also should follow bypass strategies by improving their technologies as compared to Knorr so
to achieve cost leadership strategies and save cost of manufacturing as far as possible. Maggi should
also diversify their product range into unrelated products like introducing Chinese, Mexican or
Italian spices range. (Condiments).
Maggi should engage customers more, through evolving mediums like social networking sites, road
shows, or moving hoardings with the ad of the product etc. This would enable the Maggi Brand
Managers to listen to the reviews and views from their customers and improvise their marketing
strategy.
There must be extensive media advertising in order to increase the consumers familiarity with new
product launches.
Magi should also involve product demos and samplings for new products and flavors at busy places
like malls and market places or residential complexes.
It can increase product penetration by increasing its products available not only in supermarkets,
hypermarkets and journal stores but also in small public stores and shops.
Magi should implement General promotional strategies in order to increase brand visibility.
It should also emphasize on events like, Online Maggi recipe Challenge and innovative entries must
be compiled into e-cookbook.
Launching Maggi goodies like Computer Wallpapers and Screensavers would increase Brand recall.

41

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43

APPENDICES
Annexure A Questionnaire
Thank you for taking the time to complete this survey
This survey should only take about 8 minutes of your time. Your answers will be completely confidential
Please tick () against the most appropriate answer.
1)

Which brand of instant noodles you purchase the most?

a.

Shan Shoop

b.

Knorr

c.

Maggi

d.

Other

2)

Why do you purchase this brand?

a.

Taste

b.

Health

c.

Price

d.

Availability

e.

Diverse Range

f.

Brand Image

g.

If Other, please specify

_______________________

3)

4)

What Factors drive you most towards your choice?

a.

Convenience

b.

Hygiene

c.

Taste

d.

Quality

e.

No idea
Have u ever tried Maggi instant noodles?
Yes

5)

No

Which flavor of Maggi you prefer to buy?

44

a.

Chicken

b.

Chatkhara

c.

Masala

d.

Lemon Chaska

e.

Karara

f.

Bar-B-Q

6)

Do you know Maggis slogan?

a.

Mita do bhook

b.

Taste bhi health bhi

c.

Iska magic hi aur

From where (source of advertising and promotion) you came to know about Maggi
brand?

7)
a.

TV ads

b.

Face book promotion

c.

Radio ads

d.

Billboards

e.

School programs

f.

Word of mouth

g.

Other source

8) Do you think attractive advertisement may help Maggi to increase their sales? (Yes/No/May be)
9)Do you like to try new flavours? (Yes/No)

10)

Why do you eat instant noodles?

a.

Convenience

b.

Cheap

c.

Tasty

d.

Time Saving

e.

Other

11)

Do you know the price of a Maggi noodles pack? (Yes/No)

12)

Do you think prices of Maggi noodles are affordable? Why? Why not?

45

Rate the importance of the following while choosing a noodle, 1 means least important,
13)

5 highly important
a.

Brand

b.

Length of noodles

c.

Taste

d.

Variety of flavors offered

e.

Price

f.

Packaging

g.

Non-stickiness 1

h.

Ease of preparation

i.

Availability

j.

Health ingredients

14)

Who decides which brand of noodles to buy in your household?

a.

Children

b.

Parents

c.

Housewife

15)

The degree you like the Maggi noodles

a.

I like them very much

b.

Like them a little

c.

Indifferent

d.

Not really like them

e.

Totally dislike them

16)

How do you perceive Maggi noodles?

a.

Good for health

b.

Ready to eat

c.

Junk food

d.

Tasty/fun eating

17)

What is your criterion to buy a noodle?

a.

Brand loyalty

b.

Price consciousness

c.

Quality consciousness

d.

Innovation

e.

Market availability

f.

Taste

g.

Other, (please specify) ______________________

46

18)

19)

A Maggi noodle is purely a snack time dish?

a.

Strongly agree

b.

Partially agree

c.

Disagree

d.

Strongly disagree
Give your suggestion to improve the quality and taste of Maggi noodles.

Annexure B Z table
Standard Normal Probabilities

47

48