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Marketing strategy of Maggi Noodles

Transcript of Maggi noodles

CONSUMER BEHAVIOR OF INSTANT NOODLES MAGGIPRESENTED TO:DR. ALI ASKARI(Course Supervisor)

SUBMITTED BY: GROUP 4BENISH KHAN (08)FARAH NAZ (18)IQRA GHAFOOR (24)SANA IQBAL (53)TALAL SHOAIB (37)ZAINAB FARRUKH (72)

MARKETING RESEARCHCourse no:MBA IIIDATE OF SUBMISSION: 24-05-2014Karachi University Business SchoolUniversity Of KarachiS.No. Topics Page No.1. ACKNOWLEGEMENT42. EXECUTIVE SUMMARY53. KNORR:84. MARKET SCENARIO AND CHALLENGES:165. MARKETING AND PROMOTION STRATEGIES BY MAGGI AND KNORR:166. EVOLUTION IN COMMUNICATION177. LITERATURE REVIEW188. HYPOTHESES:219. RESEARCH PROCESS:2110. METHODOLOGY:2311. LIMITATION:2412. Descriptive Research2613. Quantitative Research2714. DATA ANALYSIS:3915. FINDINGS:3916. CONCLUSION:4017. RECOMMENDATIONS4018. References4219. BIBLIOGRPHY4320. APPENDICES4421. Annexure A Questionnaire4422. Annexure B Z table47

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 SUMMARYThis 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.TRENDSA 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.PROSPECTSAs 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 STUDYThe 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 t