Consumer Buying Process of the Product Maggi

Submitted To,

Prof. Neil Sequeira

Prepared By,

Parvaz Shaikh

MMS-Marketing

Roll no.74
Abstract

The main aim of this report is to explain what is Consumer Behaviour, the process that goes
behind it and the effect of advertising on it.
Consumer Buying Behaviour

Possibly the most challenging concept in marketing deals with understanding why buyers do
what they do (or dont do).

But such knowledge is critical for marketers since having a strong understanding of buyer
behavior will help shed light on what is important to the customer and also suggest the important
influences on customer decision-making. Using this information, marketers can create marketing
programs that they believe will be of interest to customers.

Consumer behavior is the study of the processes involved when individuals or groups select,
purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

It is the study of how people buy, what they buy, when they buy and why they buy. It blends
elements from psychology, sociology, socio psychology, anthropology and economics.

It attempts to understand the buyer decision-making process, both individually and in groups. It
studies characteristics of individual consumers such as demographics, psychographics, and
behavioral variables in an attempt to understand people's wants. It also tries to assess influences
on the consumer from groups such as family, friends, reference groups, and society in general.

The study and knowledge of consumer behavior helps firms and organizations to improve their
marketing strategies and product offerings.

There are many factors that can affect the purchasing process of a person. The number of
potential influences on consumer behavior is limitless. However, they can be classified into three
main categories - Internal, External and Marketing.

Internal factors include Attitude, Knowledge, Personality, Lifestyle, Roles, Involvement etc.

External factors include Culture, Groups and Situations.

Marketing factors include Product, Price, Promotion, Distribution and Service.

Consumer Buying Process

There are stages in the consumer buying process.

Stage 1 - Problem Recognition

This is where the consumer realizes or becomes aware that he is lacking in something that he
wants.

Stage 2 - Information search

In this step, the consumer tries to find out all the possible information on the product or service
that is desired by him/her.

Stage 3 - Evaluation of Alternatives

Here, the consumer will have a look at the other options available, in case he can find something
that is more suited to him/her.

Stage 4 - Purchase decision

Here the consumer finally comes to a decision as to which product to purchase.

Stage 5 Purchase

In this step the consumer actually goes out and buys or purchases the product or service sought
by him/her.

Stage 6 - Post-Purchase Evaluation

Here, the consumer reflects back on the product that he has purchased, whether he actually
requires it, was it worth the price paid, how useful will it be in the long run etc.
Effect of Advertising on Consumer Buying Behaviour

Many organizations explore various options in order to achieve success.

Economists view advertising as having a significant effect on consumer behavior. And in the
long run, it can lead the organization to competition.

Based on the understanding regarding advertising, the approach is rooted in an organizations

search for the right answer on the effects of the competition.

Consequently, the accepted basic role of advertising is to provide consumers with the right
amount of information regarding the product or service, which is related to the objective of the
competition and that is to deliver consumer satisfaction.

It is a simple marketing concept viewed by business analysts as an effective strategy for an

organization to gather and keep the loyalty of the consumer. The use of advertising within an
organization is growing and various researches conducted reiterate its importance as an
undeniable factor that can influence the buying behavior of consumers.

We shall be taking a closer look into this factor by taking the example of the popular and famous
product of Nestle i.e., Maggi Noodles.
Maggi Noodles

Consumer Decision making Process

Consumer Decision Making Process, this basic psychological process plays an important role in
understanding how consumers actually make their buying decision. Marketers must understand
every fact of consumer behavior in terms of who, what, when, where, how and why. Smart
companies like MAGGI try to fully understand the consumers buying decision process all
their experiences in learning, choosing and using of the product.

Maggi has always considered the following steps:

1 Problem Recognition

This is the first stage of the Buying Decision where the buyer recognizes a problem or need. The
need can be triggered by internal or external stimuli which a marketer must identify by gathering
information from number of consumers. They can then develop marketing strategies that trigger
consumer interest.

Nestle after carefully analyzing the market, identified the need for a quick snack in India.
They adopted the first mover strategy and launched Maggi in India in the year 1982 as an
instant fast food.
Thereafter, Nestle recognized the consumers need for Maggi in different sizes and
introduced the 50gms, Double Pack and Super Saver Pack (s).
Later on in the years 2005 and then 2006, consumers need for a healthy instant food was
catered by launching Maggi Atta Noodles and Maggi Dal Noodles. These again emerged as
successful products and were widely accepted by masses.
Further to suffice the need for different taste, Maggi Rice Mania was brought in the market in
Shahi Pulao, Chilli Chao and Lemon Masala flavors.

2 Information Search
An aroused customer will be inclined to search for more information. At this level, a person
simply becomes more receptive to information about a product. There are four major information
sources which are of key interest to the marketer. These are the personal sources (family, friends,
and acquaintances), commercial sources (advertising, websites, packaging and displays), public
sources (mass media, consumer rating organizations) and experiential sources (handling,
examining and using the product).
MAGGI has over the years well established itself in the market and has now become a
household name. This has helped the brand gain popularity through word of mouth.

Maggis Mass Advertising Campaigns targeted consumers of all ages. Their advertisements have
highlighted that Maggi is a good alternative available with the consumers when it comes to
having a quick snack.
3 Evaluation of Alternative

Once all the consumers gather all the information he then evaluates the various option available
to him. When evaluating the potential alternatives, consumer uses two types of information the
first is the list of brands from which they plan to make their selection and the second is the
criteria from which they plan to make their decision.

Beliefs and Attitude: Evaluations often reflects beliefs and attitudes. And these are acquired by
experiences and learnings.
MAGGI has always provided its consumers with something new from time to time which has
developed a good belief in the brand and thus has helped them to choose them from their other
alternatives. Their competitors like top ramen always find it difficult on the evaluation front with
magi because of strong association of consumers with it.
Awareness set is

Maggi
Tom Ramen
Cup of Noodles
Chings
Foodles (Horlicks)

So out of the above awareness set the consumers decides to choose Maggi because after
analyzing the different parameters of the brand Maggi was chosen as the best alternative among
the rest leading to its maximum market share.

4 Purchase Decision

In the evaluation stage the consumer forms preferences among the brands in the choice set, the
consumer may also form an intention to buy the most preferred brand .In executing a preferred
intention the consumer takes up five sub decisions
 Brand
Dealer
Quantity
Timing
Payment Method

In some cases consumer may decide not to formerly evaluate each and every brand; in other
cases intervening factors may affect the final decision.

Because of the strong consumer awareness about the brand MAGGI, consumer generally prefer
Maggi out of all the available brands , due to the mass distribution strategy adopted by Maggi,
any consumer can easily purchase it from their local grocery store without wasting much of
his/her time in searching for the product , Maggi comes in various sizes like single , double and
the supersaver packs so depending upon each individuals need Maggi is catering each and every
segment of the society not to mention that as the size increase the saving on each pack increases.

5 Post Purchase

After the purchase the consumer might experience dissonance that stems from noticing certain
disquieting features or hearing favorable things about other brands and will be alert to
information that supports his/her decision. Marketer must monitor

Post Purchase Satisfaction

Post Purchase Action
Post Purchase Product Uses
Post Purchase Satisfaction

Satisfaction is a function of the closeness between expectations and the products perceived
performance, if performance falls short of expectations the consumer is disappointed and if it
meets the expectation the consumer is satisfied and if it exceeds the expectations then the
consumer is delighted.

Post Purchase Action

Satisfaction or dissatisfaction with the product will influence subsequent behavior if the
consumer is satisfied he will exhibit a higher probability of purchasing the product again. The
satisfied customer will also tends to say good things about the brand to others, marketers
says our best advertisement is the satisfied customer.

Post Purchase Use

Marketer should also monitor how buyers use and dispose of the product. A key driver of sales
frequency is product consumption rate the more quickly buyers consume a product the sooner
they may be back in the market to repurchase it.
 Internal & External Influences affecting Consumer Behavior

1 Internal Influences

Motivation and Involvement

Motivation is that internal force which arouses or activates some need and provides direction of
behavior towards fulfillment of the need. A motivation maybe physiological in nature directed
towards fulfillment of biological needs such as hunger and thirst, other motivations are
psychological in nature focusing on the satisfaction of psychological desires such as the desire
for seeking status, job satisfaction, or achievement. Everyone has both physiological and
psychological motivations, but we fulfill them in different ways. One consumer satisfies his
thirst by drinking water, the second quenches it by having a Thumbs Up, the third drinks Bisleri
Mineral Water while a fourth prefers soda. For one consumer, buying a Deluxe Maruti car is a
way of seeking status, another satisfies his want for status by becoming a member of the best
club in town, while for a third having a credit card is a status symbol.

The reason why we adopt different methods of satisfaction of our motivations is because of
the differing level of personal involvement in various activities. Involvement refers to the
personal relevance or importance of a product or service that a consumer perceives in a given
situation. For a professional photographer the choice of a camera is a consumer behavior
situation of involvement because the camera is his most important professional tool. The
photographer would be motivated to buy the best possible camera, irrespective of the price tag.
For another consumer, a camera is just a means of recording important family events and just
about any camera which is convenient to handle would fill the need.

High involvement leads to a highly motivated state of mind as in case of the professional
photographer. High involvement and high motivation lead to a consumer behavior process which
is distinctly different from that of a low involvement and low motivation.
The consumer was motivated to buy a pack of MAGGI because his physiological need for a
quick and instant tasty food which required a very less amount of time for its preparation was
duly met. When it comes to purchasing the product in terms of taste, Maggi emerged as a high
involvement product and when it comes to purchasing the product in terms of Price, it emerged
as a low involvement product.

Attitudes

Attitudes are our learned predispositions towards objects, people and events. Attitudes guide our
orientation towards these. It is our attitudes which influence how we respond to different
products and services. Attitudes are not inborn or innate in us. Rather they are learnt from people
around us.

Our attitudes influence our purchase decisions and consumer behavior.

Our attitude towards saving has undergone radical changes. Instead of saving and leading a
simple, frugal life, people prefer to have a better lifestyle today rather than save for tomorrow.

Till a few years ago most housewives had a negative attitude towards frozen, dehydrated or
instant food like MAGGI. But today, with more women joining the work force, such products
are viewed as a convenience and instant, quick to cook meals, looked upon favorably. The
change in attitude of consumers has helped Maggi gain a market share of more than 50%.

Personality and Self-Concept

Personality is the sum total of the unique individual characteristics that make each one of us what
we are.

It provides a framework within which a consistent behavior can be developed. Self-concept or

Self-image is the way we perceive ourselves in a social framework. We always tend to buy only
those products and services which we think fit or match with our personality.
Marketers also try to give a distinct image or personality to their products which is as close as
possible to that of the target consumers.

MAGGI tried to impart a distinct image to its 2 Minute Noodles by targeting consumers like
young adolescents and working women. Its Fast to Cook, Good to Eat and Health Bhi,
Taste Bhi funda clicked the consumers and was widely accepted by masses.

Learning and Memory

Everyday we are exposed to a wide and diverse range of information. But we can barely recall a
small fraction of it the next day.

We only remember that which is of relevance and importance to us, or where we have a
motivation to remember.

Our motives, attitudes and personality act as filters by letting in only relevant information and
keeping all other information out. Surely we would see the product, hear its jingle on the radio
but chances are it will not register in our minds. We will remember it only for a short while and
then forget it.

This is known as selective retention. We retain in our memories only selective information.

MAGGIs Mass Advertising has helped the company to position itself in such a manner that
even its tagline has become a part of our daily conversations. This has helped Maggi to enable
the consumers to memorize its product.
 Information Processing

This refers to the process and activities which consumers engage in while gathering, assimilating
and evaluating information. The manner in which we assimilate and evaluate this selective
information is determined by our motives, attitudes and personality and self-concept. Thus the
same information may be evaluated in a different manner by two different individuals and the
ensuing response may also be very different. A half-filled glass elicits the response a half-empty
glass from, one consumer while another reacts by saying it is half-full
The information regarding the new variants like MAGGI Atta and Dal Noodles was processed
well by the consumers as they perceived it to be a healthy and nutritious variant. Maggis Rice
Mania is not as successful as its other variants since consumers perception for this product
varied marginally.

2 External Influences

Cultural Influences

The first of the influences is that of cultural variables.

Culture is defined as the complex, sum total of knowledge, belief, traditions, customs, art,
morals, law and any other habits acquired by people as members of a society. Culture of one
society differs from that of another. Many of our actions and behavior as consumers stem from
our cultural background.

MAGGI has now become an integral part of consumers preferring fast food. The societal culture
has now drastically changed. Women, who were earlier considered as homemakers only have
now stepped out of their homes and are engrossed with hectic schedules. They largely opt for
such alternatives that are less time consuming and even healthy for their family.
 Sub-Cultural Influences

Within a given culture, there are many groups or segments of people with distinct customs,
tradition and behavior, which set them apart from other people. All Indians share one common
cultural heritage, but the Hindu Brahmins of Tamil Nadu are very different from the Hindu
Bengalis of Calcutta in the same way as Kashmiri Hindus are different from the Hindus of
Gujarat. Each of these people, within one cultural mainstream have uniquely distinct sub-
cultures. They have their style of dress, food habits, religious traditions and rites all of which
have implication for the marketer.

Considering the local tastes and preferences that form a part of the subculture, MAGGI
introduced its Rice Mania in Shahi Pulao for the North, Lemon Masala for the South and Chilli
Chao for the Eastern parts of the country.

Social Class Influences

Social class is a group consisting of a number of people who share more or less equal position in
a society. Within a social class people tend to share same values, beliefs, and exhibit similar
patterns of behavior and consumption. Some social classes are ranked as higher and lower.
Social classes differ from one society to another, and their standing in society may also change
over time. Social classes may be defined by parameters such as income and occupation. The
belongingness to a social class influence decisions such as choice of residence, type of holiday,
means of entertainment and leisure.
Considering the income and occupation of the urban society, MAGGI targeted the same and did
not pay much attention towards the weaker sections of the society. They tapped the potential of
the huge middle class consumers whose personal disposable income was high enough to resort to
all such products.
 Social Group Influences

A social group is a collection of individuals who share some common attitudes and a sense of
relationship as a result of interaction with each other. Social groups may be primary, where face-
to-face interaction takes place frequently, such as families, work groups and study groups.
Secondary groups are those where the relationship is a more formalized and less personal in
nature. Examples of primary groups are associations of professional members of a political party,
and social groups such as Rotary, Lions etc. The behavior of individuals as consumer is greatly
influenced by other members of the group.

MAGGI promoted its products as one, for the social group like school goin children, teenagers
and working women.

Family Influences

Family is a social group which can be defined as a primary group. It needs to be studied in great
detail as it is one of the strongest sources of influences on consumer behavior.

The first and strongest influence on a child is that of his family and he imbibes many behavioral
patterns from other family members subconsciously and these tend to stay with him even after
attaining adulthood. Further, within a family many decisions are made jointly with various
members exerting different degree of influence. The changing structure of families as the joint
family system gradually gives way to single nuclear families also influence the consumer
behavior.

MAGGIs advertisements have always portrayed it as a family meal wherein it shows the entire
family obsessed with Maggi for e.g. Maggi Mania. The advertisements also show the entire
family consuming Maggi as their major meal.
 Advertisements:

1 Maggi Noodles:

The following concepts of consumer behavior are applied in the maggi ads:

Family: The ad targets a family scenario, usually focusing on the fact that the noodles are
generally liked by the children. It uses a joint family setting, wherein grandparents are
also shown in the family, thus the ad tries to target customers through all the ages. The ad
acknowledges the importance that children play in a households purchase decisions by
giving the central role of the advertisement to a child. Thus they have observed that the
children influence the parents to buy Maggi products.

Motivation: Some ads of Maggi focus on the fact that Maggi is easy to cook. It shows
that Maggi can be cooked in two minutes, and that it is good to prepare Maggi as a snack
to serve children. This advertisement motivates mothers to purchase Maggi noodles for
the ease of cooking them.Another advertisement featuring Maggi Atta noodles focuses on
the fact that it is healthier than regular instant noodles. Thus, it motivates the health
conscious people to purchase their product.

Culture: The maggi advertisements rely heavily on Indian culture, in the sense that it
always shows traditional family values in its advertisements.
For example, in a traditional Indian family, the mother always cooks for the family. This
has always been shown in the advertisements for maggi noodles.

Affiliation: Maggi portrays the need for affiliation in an advertisement in which a child
brings home his friends to play and his mother makes maggi noodles. In this
advertisement, the need for affiliation is played upon, in showing that friends can be won
over, or impressed with the preparation of maggi noodles.