Subject: Consumer Behaviour

Year: Dec:21

Q1)
Introduction:

Maggi, Nestle India’s single-largest revenue earner, was banned in June 2015 for six
months across India on allegations that it contained chemicals beyond prescribed limits.
The company had to recall 38,000 tonnes of Maggi noodles from millions of retail
shelves and destroy them. The ban was relaxed in November 2015. The controversy
has been the biggest faced by the listed Indian arm of the world’s biggest packaged
foods maker Nestle, with Maggi losing over Rs 1,000 crore in sales and a serious dent
to its brand image. Maggi had returned to store shelves by November ’15 after multiple
clearances from government-certified laboratories, and also returned to leadership
position with re-conquering market share of 60% in 2017. Rising to market leader
position in a short span of time after a series of such brand devastating incidents, is
something that other companies wouldn’t be dared to think about if it ain’t for Maggi.

Concept & Application:

Strengths:

Building Strong Tagline Tapping on the Problem Statements:

A tagline is a three to seven word phrase that accompanies your logo. It expresses your
company’s most important benefits and/or what you want your customers to remember
about working with you. Think of it as the words you want to linger in your target
customer's mind about you and what you have to offer.

Early Indian consumer market was unused to fast foods & was very reluctant to
welcome a change in their food habits. Nestle had to promote noodles as a concept,
before it could promote Maggi as a brand. They used strong taglines which tapped on
the problem statements to address this.

2 mins noodles — Convenience.

Taste Bhi Health Bhi — Health.
2 minute mein Khushiyan (Happiness in 2 minutes) — Fun & Happiness.

It was devised as a two pronged strategy to attract mothers on the ‘health &
convenience’ plank and lure kids on the ‘fun’ plank.
Strong Visual Identity:

When it comes to branding, your visual identity plays a huge part in creating a great
impression whether it be the first one or an everlasting one.
Maggi has been doing this so efficiently that they managed to check all the boxes in
visual branding. Be it creative packaging, colour selection, logo consistency they are
spot on.
Colour selection red & yellow which are bright & attractive are also scientifically known
to induce hunger in human beings.

Logo: Logo consistency literally remained unchanged since its origin with such a
consistent logo & colour elements, every age group will be able to relate with the brand
over a period of time, evoking nostalgia.

Packaging: It creates & establishes personal connection. Maggi ran a campaign “Meri
Maggi — 2 minute mein Khushiyan”. Where they featured short personal stories from
customers on its wrapper and marketed it country-wide, making an emotional bridge. At
times, their packaging also consisted of various tools of sales promotion like color
pencils, sketchbooks & fun toys which worked wonders especially in enhancing the
brand reach among students & kids.

From the days of telling people what Maggi was about, to co-creating the story and
creating storytellers out of everyday people,the brand was definitely more than a food
product. The name Maggi slowly “attached” itself to the sentiments of Indian consumer’s
need without much disruption.

Target Market adaptation:

Initially launched in 5 flavours — Masala, chicken, capsicum, sweet & sour and lasagna.
Maggi had to fight hard to be accepted by Indian consumers with their hard-to-change
eating habits. In the course of many market researches and surveys, the firm
repositioned itself by blending regional taste and rich varieties. Their products then had
the ingredients & taste (dal atta, rice, pudina masala etc.,) that Indian consumers are
comfortable with. This brand made noodles a house-hold when many foreign food
brands are trying to change Indian consumers' taste, Maggi bought in a silent revolution.

Media & Celebrity Endorsement:

Nestlé Maggi’s brand positioning was so strong that consumers identified instant
noodles with Maggi. Such was its popularity that Snyder (2016) wrote, “Maggi had
become the third staple of Indian food after wheat and rice”. Maggi commanded 80.2%
of the market for instant noodles in the quarter to March 2015 (Mitra, 2016) and all that
was needed was to keep consumers satisfied with its product and happy with new
variants, offers and contests to increase its market share further.

On social media Maggi responded with a pending investigation via social media during
the first and second week of the crisis. Once they were returning to shelves the brand
then had celebrities like Juhi Chawla to regain their customers' trust. They also
published results of tests to the media. Put out consistent Ads for 6 months showcasing
safety. Random packet checks from different manufacturing facilities.

Conclusion:

Maggi must enter crisis control mode to ensure consumer and repair severed regulatory
relationships. Going forward, there must be strong quality controls and assurance that
the issue will never happen again.

Q2)

Introduction:

Segmentation, targeting and positioning is a three-step process that allows for the
development of a specific and actionable marketing strategy.

The main principle behind the process is to segment your audience, target each
segmented group according to their preferences and habits, and make positioning
adjustments in your branding and marketing strategies to accommodate their needs and
expectations.

The reason why the segmentation-targeting-positioning process is so effective is that it

breaks down broader markets into smaller parts, making it easier to develop specific
approaches for reaching and engaging potential customers instead of having to use a
generic marketing strategy that would not be as appealing, or as effective.

Concept & Application:

Segmentation:

Market Segmentation divides the heterogeneous market into homogeneous groups of

customers who share a similar set of needs/wants and could be satisfied by specific
products. Maggi Brand has segmented the market on the basis of lifestyle and habits of
urban families. Nestle segmented the market on the basis of lifestyle and eating habits
of the Indianconsumer and brought the Maggi noodles product accordingly into the
Indian market. Although the initial marketing strategy was a failure, it was soon revised
and the product was repositioned targeting, wide urban population. Maggi focused on
the demographics, psychographics and behaviours of their audiences.

The market was segmented into the following:

Region & Usage Rate:

● Urban: Heavy users
● Semi Urban: Medium users
● Rural: Light

Occupation:
● House wives & kids
● Working professionals
● Students

● Social class: Middle & upwards

● Family life cycle: Young married & married with children
● Life style: Hard press of time

Targeting:

Market Targeting refers to evaluating and deciding from amongst the various
alternatives, which segment can be satisfied best by the company. The Maggi
Brandhave mainly targeted the Kids, Youth, Office Goers & Working Woman which falls
into the category of “convenience-savvy time misers” who would like to get something
instant and be done with it quickly. Nestle targeted Kids, Youth and working women.
Marketing taglines were made to target specific users catering to their needs. It helped
mothers with the promise of fast to cook and good to eat snacks.
Taglines like 'Mummy, bhookh lagi hai’ & 'Bas 2 – Minute’ effectively communicated the
product's benefits to target consumers.

Below are their target markets:

● Primary target: >16 years

● Others: Family health conscious people: Maggi vegetable atta noodles
● Young professionals: Maggi Cuppa Mania

Positioning Maggi is Trying to Achieve:

Market Positioning is the act of designing the company’s offerings and image to occupy
a distinctive place in the minds of the target market. The goal of positioning is to locate
the brand in the minds of consumers to maximize the potential benefit to the firm. Maggi
has positioned itself in the snacks category and not in the meal category since Indians
do not consider noodles as a proper food item. Maggi positioned their product with the
well-known slogan ‘Taste bhi health bhi’, ‘2 minutes noodle’, ‘Fast to cook. great to eat’,
which positioned Maggi as a product to get fast relief from hunger quickly in a healthy
way.

Conclusion:
Nestle India celebrated the brand’s 25 years of association with the Indian consumer
with the launch of its campaign, ‘Me & Meri’, wherein consumers were invited to share
their Maggi moments.

Another campaign, ‘Meri Maggi — 2 minute mein Khushiyan’ takes the old story forward
and invites people to share the impulsive moment of joy that the noodle brand has
brought in their life, positioning Maggi as a source of happiness, something similar to
what Coca-Cola had done with their “Open happiness” campaign.
Even in their recent “Miss you” campaign which was used during the ban period,
precisely before the re-launch of the product, all videos were eminently crafted to spur
empathy among viewers.

Through these kinds of advertisements, It claims to be more than just a simple food
product in our lives. It is emotive. Maggi is just not a food product. It is an original
concept. It is a food habit. It is a great idea. It is the cheapest branded food available in
the market.

Q3. 1)

Introduction:

Marketing has always existed and is a concept that is not new however the way of doing
marketing has evolved over the past decades and some would classify the way
marketing was done a few years or decades back as traditional marketing while
marketing of the present is referred to as modern marketing. There are a number of
traditional marketing strategies that are still used today but these will surely become
irrelevant in the future as the world is moving into a more modern and technological
approach to marketing. Traditional marketing is focused at selling the products
produced while modern marketing focuses more on the customer satisfaction. It is about
looking at the needs of the customer.

Traditional marketing used mediums such as boards, pamphlets, radio, television for
advertising while modern marketing not only uses the traditional marketing but also
uses modern methods like online marketing, social media marketing and many more to
communicate to their audience. The rapid growth in technology and digitalisation is
shaking up a number of things that have been a part of traditional marketing before and
will pave the way for a more digitised solution.

Concept & Application:

Over the course of time Maggi has used traditional and modern ways of marketing to
communicate with their customers as well as drive their sales. But before they could
approach these mediums they needed to get their strategy straight to be able to acquire
their customers. Hence, they used the below positioning strategies:

Some of them were:

Fast to cook, good to eat: Focused on educating customers about nutritional value of
Maggi, convenient in cooking, and is a healthy product

Maggi 2 minute noodle: Change in target market

Taste bhi, health bhi: Maida isn’t considered good for health, hence they came with
atta and rice variants

Me & meri Maggi: Emotional bondage with customers

Using this positioning they should follow the below advertising approaches to remain the
market lead:

Signage: Thriving in The Digital Age

Signage materials comprise digital photos framed and lighted in the dark. Digital
signage has moved on from boring walls to mobile taxis, reaching a wider audience
than ever before. Adorning buildings, shop-fronts, and malls, signage is turning out to
be more than old wine in a new bottle.

Billboards: Fitting The Bill

Billboards using printed or hand-painted images on canvas are still very commonly in
use. From highways to hallways, billboards have come a long way. This traditional
marketing mode uses less text and more images. A picture is worth a thousand words
and compelling images are great for raising brand awareness. This is a marketing
method most are familiar with. Larger signs will never be overlooked and billboards
cannot go obsolete, given their wide reach across social classes and geographical
boundaries.

Direct Mail: Moving Past Email Marketing

Direct mail is making a real comeback. Once upon a time, people would tag it as snail
mail and shrink away. But now, direct mail scores on creativity, personalizing and
targeting a particular audience. Direct mail is not just easier to understand, it also has a
greater power to influence readers. Brand recall is way higher in research studies where
direct mail was compared to other marketing methods like email. Faster response rates,
more purchases and greater ease of retrieval make good old-fashioned direct mail the
real deal in new-age marketing.

Consider why the pen may be mightier than the sword when it comes to marketing.
Direct mail in certain industries also evoke a higher response rate. For example, yellow
letters work far better than bond paper-based typewritten letters in the real estate
investment space. Composed by hand on the yellow legal pad, these letters are more
individualized and personal. Content is incisive and essential sender information is
included.

Print Ads: Harnessing Word Power

Print is not dying; it is merely evolving. Mobile penetration has only made print media
more distinctive. Newspapers and magazines are visible on digital mediums and the
smartphone could well be a boon for print ads.

Conclusion:

The core value a sale generates is a superlative product or service. Just as no amount
of good marketing can sell a bad product, the reverse holds true as well. Marketing is an
art that derives its value from traditional techniques because this is the way it has
always been done.

From baby boomers to Gen-X, and Gen-Y, Millennial to Swinging Sixties, traditional
marketing covers a lot of ground. While digital marketing is continuing to gain ground,
traditional marketing techniques remain an important secret weapon for interactive,
face-to-face and skilled marketing. This together would help Maggi add continuous
recall and awareness about their new products and their value proposition would remain
strong.

Q3.2)

Introduction:

Consumer decision making process is the psychological process that plays an important
role in understanding how consumers actually make their buying decisions. Marketers
must understand every facet of consumer behaviour in terms of “who, what, when,
where, how and why”. Smart companies like Maggi, try to fully understand the
consumer's buying decision process and their experiences in learning, choosing and
using the product.
Concept & Application:

Problem recognition:

This is the first stage of 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 a number of consumers. They can then develop
marketing strategies that trigger consumer interest.

Nestle after carefully analysing 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 consumer’s need for Maggi in different sizes and
introduced the 50 gms, double pack and super saver pack.

Later on, Maggi launched Maggi Atta Noodles & Maggi Dal Noodles to cater to
consumers looking for healthy instant food. This was successful and was accepted by
all masses. To bring in more variety Maggi also launched Maggi Rice Mania in flavours
Shahi Pulao, Chilli Chao and Lemon Masala this gave them the opportunity to cater to
the different palettes.

Information Search:

An aroused customer will be inclined to search for more information. At this level, the
person will be more receptive to information about a product. There are four major
information sources which are very important.

1. Personal Source
2. Commercial Source
3. Public Sources
4. Experimental Source

Maggi has over the years established itself in the market and has now become a
household name. This has helped the brand gain popularity through word of mouth.

Maggi’s mass advertising campaign 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 good snack.

Evolution of Alternative:
Once all consumers gather all the information they evaluate all the available options.
When evaluating the potential alternatives, consumers use two types of information

1. List of brands from which they want to make their selection

2. The criteria from which they plan to make their decision
● Beliefs & Attitudes:

Evaluation often reflects beliefs and attitudes. And these are acquired by experience &
learning. Maggi has provided its consumers 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 Maggi because of strong association of consumers with it.

Awareness set is

1. Maggi
2. Top Ramen
3. WaiWai
4. Cup of Noodles
5. Chings

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

Purchase Decision:

In the evaluation stage the consumer forms preferences among the brands in the choice
set, the consumers may also form an intention to buy the most preferred brand. In
executing a preferred intention the consumer takes up five sub decisions:

1. Brand
2. Dealer
3. Quantity
4. Timing
5. Mode of payment

Because of the strong consumer awareness about the brand Maggi customers
generally prefer out of the available brand option due to the mass distribution strategy
adopted by Maggi. The consumers can look for the product with ease and it comes in
various sizes.
Post Purchase:

After purchasing the consumers may face dissonance that stems from certain
disquieting features or hearing favourable things about other brands and will be alert to
information that supports his/her decision. Marketers must monitor:

1. Post Purchase Satisfaction - Satisfaction is the closeness between

expectations and the product's perceived performance.
2. Post Purchase Action - It relates to the satisfaction and dissatisfaction with a
product. If a consumer is satisfied, they will buy the product again and will also
spread good feedback about the product through word of mouth.
3. Post Purchase Product Use - This deals with how the buyers use and dispose
of the products. It is the rate of frequency of how quickly the buyer consumes the
product and needs to buy another.

--FIN--