Marketing Management Term II – 2012 -2014

Submitted to Prof. Srinivas Prakhya

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

Table of Contents
Executive Summary ................................................................................................................................ 4 Indian Noodles Market ........................................................................................................................... 4 Current Market Scenario .................................................................................................................... 5 Nestle Maggi Products ........................................................................................................................ 6 Competitors ........................................................................................................................................ 8 Research Premise and Methodology .................................................................................................... 10 Preliminary Research ............................................................................................................................ 11 Maggi Strategy .................................................................................................................................. 12 Early Strategy and launch ............................................................................................................. 12 Marketing Strategy – Exploring Value Creation Opportunities .................................................... 13 Marketing strategy – Company Analysis Details .......................................................................... 13 Marketing Strategy – Choosing Value .......................................................................................... 14 Marketing Strategy – Creating, Delivering, Communicating and Capturing Value ...................... 17 Stage II Research ................................................................................................................................... 18 Depth Interviews .............................................................................................................................. 18 Overview from Consumer Interviews ............................................................................................... 18 Product Values – An A-C-V Ladder.................................................................................................... 24 Consumer Values – A Hofstede Model ............................................................................................. 24 Quantitative Analysis - Survey .......................................................................................................... 26 Survey Design................................................................................................................................ 26 Interpretation of Results – Perceptual Map ................................................................................. 27 Synthesis of Results and Recommendation for Marketing Strategy .................................................... 29 Why not ethnic Chinese Noodles: .................................................................................................... 29 Can yippee be threat to Maggi’s market share: ............................................................................... 30 Our Recommendations: .................................................................................................................... 30 Improving the dal atta variant: ..................................................................................................... 31 Appendix I ............................................................................................................................................. 33 Depth Interviews .............................................................................................................................. 33 Interviewee 1 ................................................................................................................................ 33 Interviewee 2 ................................................................................................................................ 37 Interviewee 3 ................................................................................................................................ 42 Interviewee 4 ................................................................................................................................ 45 Interviewee 5 ................................................................................................................................ 48 Interviewee 6 ................................................................................................................................ 50 Section D, Group 5 Page 2

Point of Sale Interview - Excerpts ..................................................................................................... 52 Company Interview ........................................................................................................................... 58 Appendix II ............................................................................................................................................ 60 Survey Results: (Excluding telephonic) ............................................................................................. 60

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Executive Summary
Maggi has dominated the Indian noodles market for a long time and still continue to hold more than 80% of market share. This report presents a detailed market analysis of Maggi and its competitors. Through this report we have tried to answer few of the questions as to how Maggi achieved and continues to sustain the role of a market leader since a long time. We also carried out many detailed interviews of noodles consumers and tried find out how Maggi is perceived by consumers. This report presents a detailed analysis of potential threats that Maggi is currently facing or can face in the coming future. We have sorted out some of the weakness in the noodles market and how Maggi can use them as an opportunity to target or further influence its customers. We tried to find out whether first mover is the only advantage that Maggi has or is it something else. In the later section of this report, we have suggested some recommendations that can be used by Maggi as an action plan against competitors who are aggressively trying to acquire Maggi‘s market share.

Indian Noodles Market
Instant noodles have been around for over half a century, highly popular in Asian countries like China They are believed to have been invented by Momofuku Ando, the founder of Nissin Food Products in 1958 in Japan. In the traditional Indian society of the 1980‘s, however, the concept of ready-to-eat food was alien! People were skeptical as well as hesitant to experiment with any

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packed and the so-called processed food meant to be consumed by their children. MAGGIE came up with its product of the 2-minute (ready-to-eat) instant noodles in those conservative Indian markets of the 1983. Today, however it has grown into the most popular and sought after Indian instant noodles brand. With the growing popularity of these ‗instant noodles‘ among the burgeoning middle class of India, you'd expect plenty of action in the noodles market. Today, Noodles are no longer considered as a processed food; it has become mainstream, a choice rather than a last alternative and has come to be accepted as a part of the regular household menu. Today it is consumed by everyone; right from kids and teens to young adults and retirees. Today, India‘s noodles market is growing rapidly & is estimated at over INR 3,000 crore in annual sales. It includes pasta, vermicelli and instant noodles. It is growing at 20% per annum. And hence all the big FMCG players in India are targeting a piece of this share.

Current Market Scenario
Nestle is the market leader with 58.3% market share in the overall category and over 80% in the pure noodles category. Nestlé‘s Maggi has been synonymous with noodles. But over the last couple of years it has been losing market share on a monthly basis to new entrants like ITC's Sunfeast Yippee, GlaxoSmithKline's (GSK) Horlicks

Foodles, Hindustan Unilever's (HUL) Knorr Soupy noodles, Big Bazaar's Tasty Treat, Top Ramen and several other smaller players. Maggi‘s share of the noodle market on a pan India basis has slipped from over 90% to around 85% in a matter of years.

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Its instant noodles market share has dropped off across all parts of India at the same time.

Nestle Maggi Products
Maggi has been market leader in the noodle‘s segment in India and has recorded the highest sales in this market. It took several years and lots of money and resources for nestle to establish its noodles brand in India. The basic problem the brand faced was the understanding the psychographics of its target segment and hence the noodles faced a lot of problem in promoting sales. Instant noodles have
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been around for over half a century on the global menu card. In India, in the era of conservative and traditional Indian food consumption of the early 80s; the concept of ‗ready-to-cook‘ food was alien to the Indian market. People were skeptical to experiment with food meant for their children. Nestle was the one to introduce this market to India. It was made popular by Nestle, which introduced its product here under the brand name "Maggi" in 1983. a. MAGGI 2-MINUTE Noodles: Now available in many delectable flavors like Masala, Chicken, Tricky Tomato, Thrilling Curry & Romantic Capsicum.

b. MAGGI Vegetable Atta Noodles: Healthy- more fiber, real vegetables Provides dietary fiber equal to 3 prepared rotis Positive market response from health conscious market segment; although many people doubt the quantity of aata and find the use of veg as a gimmick!! c. MAGGI Multigrainz: Inspiration for product comes from the growing consumer preference for a healthy lifestyle Source of protein, calcium and fiber Very low sales, taste is what bothers majority of consumers

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d. MAGGI Cuppa Mania Carry on the go Fits with todays rushed lifestyle Not a very encouraging consumer response e. MAGGI – Rice noodles & MAGGI – Dal Atta noodles A market failure because of a high price compared to other MAGGI products. Many consumers also hated the ‗taste‘.

Competitors  Top Ramen
Top Ramen - ‗Don‘t be a noodle, be a smoodle‘ was the ad that brought Top Ramen into the Indian market. It was launched in 1991 The brand‘s focus on ‗health‘ and ‗energy‘ in particular is apparent with ‗Saina Nehwal‘ as its brand ambassador. Variety: masala, atta, chicken Although cheaply priced, failed in the Indian market, MAGGI preferred by a majority of Indians over TopRamen Lack of availability and market penetration are the other two major issues for its failure

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 Horlicks FOODLES
A potential threat Although lack of consumer awareness, people are appreciating the health benefits offered by it. Many consumers labeling it as a ‗perfect replacement for MAGGI‘ Notched up 2.5 per cent market share Packaging (FOODLES) is at par with any good brand. In addition to mentioning the ingredients and price it gives Four Horlicks Assurance: Fortified with Iron and Calcium With 9 vital vitamins No Artificial colors No Added preservatives.  Knorr Soupy Noodles Knorr managed to grab a market share of only 2.6% in a span of two years HUL is set to launch Knorr Soupy Noodles in a completely new avatar by December 2012 with a thorough overhaul — revisiting the packaging, taste

and pricing.
 ITC’s Sun feast Yippee Launched Sep 2010 Classic Masala
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Magic Masala Targeting MAGGI with BENEFIT positioning: Comes in round shape; no breaking (like Maggi); resulting in long noodles Advantage: deeper penetration with already well established, penetrative distribution channel of ITC.  Ching’s Secret Noodles

A brand for authentic Chinese food ingredients Offering a range of sauces, soups and noodles Easy-to-follow recipes  Wai Wai, Smith & Jones, Ching's secrets, Tai Pai Noodles & NE Time noodles Popular new brand of instant noodles in India Gaining momentum in North Eastern states, Sikkim and west Bengal.

Research Premise and Methodology
Seeing that Nestle Maggi enjoys such a substantial market share the question which obviously comes to mind is the reason behind it. Also lately, Maggi is showing few signs of faltering, launching new variants one of the newer ones is Maggi Masala Damdaar and pulling out all stops to cement itself in the consumer mind space. In 2012, for instance, it signed on tinsel town superstar Amitabh Bachchan as brand ambassador. Maggi is growing consumption by upsizing packs with various combo &
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multi packs.Through our research, we sought to understand Maggi‘s current brand perception among the consumers from different age groups. Further we analysed the success of their current strategy on the barometer of brand perception and identify any gaps. Finally, we hoped to provide some insights and recommendations on the way forward. A preliminary analysis of Maggi‘s current strategy and brand perception was carried out based on qualitative analysis of depth interviews. Based on this a SWOT analysis was performed based on different marketing techniques. In the second phase again, depth interviews of consumers from all the age groups were conducted to understand their needs as a consumer and to specifically identify their perception of Maggi with respect to its competitors. Based on the results of these analyses, a detailed online questionnaire was prepared to gauge the brand perception across various attributes. Comprehensive quantitative analysis was performed on the results of the survey to understand the current competitive position and potential for the future.

Preliminary Research
Based on qualitative analysis of interviews of a. Maggi Users b. Nestle Maggi Employees c. Non Maggi Users & d. People who have shifted from Maggi to its competitors We arrived at the following analysis:
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Maggi Strategy
The needs that the product is trying to address are very explicit. It is a tasty snack which satisfies hunger and takes very less time and efforts for preparation. People feel like eating Maggi because it satisfies hunger and tastes superb. Early Strategy and launch In India it was launched in 1980s by Nestle group of companies. Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced was the Indian psyche. i.e Indians used to be conservative about the food habits so noodles faced a lot of problem in promoting sales. Initially nestle tried to position the Noodles in the platform of convenience targeting the working women. However, the sales of Maggi was not picking up despite of heavy Media Advertising. To overcome this NIL conducted a research, which revealed that it was children who liked the taste of Maggi noodles and who were the largest consumers of the product. so they came up with Maggi- 2 minute noodles with price of Rs. 2.10 with a close of 100% margin. NIL shifted its focus from working women and targeted children and their mothers through its marketing. NIL's promotions positioned the noodles as a 'convenience product', for mothers and as a 'fun' product for children. The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this positioning. They promoted the product innovatively like Distributing free samples, giving gifts on return of empty packets.

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Marketing Strategy – Exploring Value Creation Opportunities

Customers

•Noodles Industry has a wide range of customers ranging from children (40 years Interviewer: Do you eat instant noodles? Do you like it? Anusua: Yes, I eat instant noodles occasionally. But I am not that much fond of instant noodles. My daughter is the one who is fond of instant noodles. Otherwise, neither I nor my husband is that big a fan of instant noodles. But, in this fast paced life you cannot do without it. You have to have some kind of fast and easy to cook food available at your home. Both me and my husband actually like the hakka noodles better which comes from local brands. They are not that easy to cook and it is time consuming but I like the taste. My daughter however is a fan of instant noodles. She is the one who mainly likes instant noodles.

Interviewer: How frequently do you have instant noodles, like how many times per week? When will you generally have it? Anusua: Generally we have it twice or thrice a week, not more than that. Mainly, my daughter will have it after she comes back from college. It is easy to cook and fast. She can cook it herself. I do not need to go to the kitchen for that. So, actually it is very convenient. She has it only when there is nothing other to eat – that is nothing tastier. Sometimes she just wants some change from the normal food. I will also have it when she prepares. My husband also has it. But, I think you should not
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have it always. Sometimes for a change is OK. But, I don‘t think they are very healthy. If however, we are planning to have noodles on holidays and all, I will prepare hakka noodles only. It takes a bit of more time but it is worth the effort.

Interviewer: How many different brands of noodles have you tried so far? Include hakka noodles also or any other thing which you might have tried. Anusua: Well, I have tried out a lot of different brands. I have had Maggi, Chings, Yippee, Smith & Jones, Top Ramen and then Tasty treat and many other local brands for the hakka noodles. Apart from these I have also tried out other things like Pasta, Maccaroni etc. I like to try out different things sometimes. It gives me a change and everyone likes that also.

Interviewer: So, what exactly do you look for in instant noodles? Anusua: Well, firstly it should be convenient to cook. Because that is the most important part, like without me going into the kitchen, my daughter should be able to prepare it without much hassle. It should be able to be cooked very fast. It should be really 2 minutes. But most of them are actually not. Next, it should not be bland, that is it should be fun and it should taste different and should come as a break from the normal tiffin. Also it should not be totally unhealthy. Like, I know they are not healthy but it should not be bad for health.

Interviewer: Well, is there any particular brand which you like most? Which one do you buy most among instant noodles?

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Anusua: The most I buy is Maggi, because my daughter likes the taste and also it has been there for long time. So, you can buy it without worrying. Also, I buy Tasty Treat, whenever I go to Big Bazaar.

Interviewer: Is there any particular reason why you prefer Maggi over others? Anusua: Actually, Maggi is the only instant noodles brand which is available in the local store. It is a small store and they don‘t keep any other brands. So, I have to buy Maggi whenever I am buying for the short term. Other brands are mostly available in the malls only. Like Smith & Jones or Top Ramen or Tasty treat – they are available only in big Food World type of malls. Whenever I go to Foodworld, generally I buy Maggi and Tasty treat.

Interviewer: So, if the other brands are available in the local store, will you buy them? Anusua: Well, I think not. See, basically they are not available, and so I haven‘t given much thought but now that you are asking, I think I will prefer Maggi only. Maybe, once in a while I will try out some different brand but on an average I think I will buy Maggi only. Because, Maggi is something which you can trust. It has been there for a long time. You can be sure that it is safe. It may not be actually healthy but you can rest assured that it won‘t affect you adversely. Maggi has become the equivalent of noodles. You don‘t go the shop and tell that give me a noodles. You always tell that give me a Maggi. It is like synonymous to noodles.

Interviewer: Do you feel that it is different in taste from other noodles? Anusua: No, to me they seem the same. There is not much difference. But my daughter never complains about Maggi or asks for something else specifically, so I am OK with it. I think all of them taste more or less same only, not much difference.
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Interviewer: Are you aware that there are various varieties of noodles available like Atta Veg Noodles, Chicken Masala Noodles etc? Have you tried them? Which one do you like best? Anusua: Well, I think I have tried all varieties. At least, most of them. They are OK once in a while but I think overall, the plain Masala flavour is the best. It‘s like I don‘t have a particular inclination to any of them, just that I have been having the Masala flavour and I like it and others are not that much special.

Interviewer: You mentioned that you would rather prefer Hakka Noodles over Maggi or instant noodles. Any reason? Anusua: Well, if you are cooking the Hakka noodle, you can add lot of vegetables in it, you can prepare your own gravy, and basically it is a full-fledged dish. It tastes a lot better also, but obviously it is time consuming. In instant noodles, you get the same flavour of masala and soup. Interviewer: But, nowadays, Maggi and other brands have also come up with Vegetable Atta noodles and others. Have you tried them? Anusua: Well, I have tried them but they don‘t taste the same as proper vegetables. Besides, you can prepare proper gravy as in restaurants. These things will never go with instant noodles.

Interviewer: In your mind what are the top 3 brands of noodles? Can you just compare them? Anusua: Well, for me the top 3 brands will be Maggi, Tasty Treat and Top Ramen. Maggi is the best when it comes to availability, also you can be sure that it is safe and it is the trust which comes into the picture. Price wise also, it is reasonable. Although whenever I go to Food Bazaar, I will buy Tasty Treat because it is available in bigger packs and it is cheaper than Maggi and tastes more or less same. However,
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most of the time we get smaller packs only from local stores and I would prefer Maggi, because my daughter likes the Maggi masala flavour and we have also sort of grown used to it. Top Ramen is good for a change. Otherwise, all of them can be cooked very easily and it is convenient. So, not as many differentiating factor as such. Just that, Maggi is available and I know that it is good.

Interviewer: What will you prefer supposing that Maggi is not available? Anusua: Well, if Maggi is not available, I would prefer readymade Pasta or Macaroni. They are also OK. Otherwise soups are also OK. Nowadays Knorr soups are really good. I think the main point is easy to cook and it should be tasty. They should not be staple diet as is the case with many bachelors, you can have it once in a while. Interviewer: Well, Anasua, thank you very much for your time. We have been able to gain a lot of insight into the consumer minds with your interview.

Interviewee 2

Details: Sudhir Padala Gender: Male Age: 30 years

Interviewer: Do you eat instant noodles? Do you like it? Sudhir: Yes, I eat instant noodles regularly. I like instant noodles. I stay alone and they offer me mom‘s food taste at home.
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I come tired from office and feel hungry at night. I have my lunch and breakfast at office. On weekends and during weekday evenings, I mostly eat noodles. I add eggs or paneer or cabbage or cheese to my noodles sometimes. Then it becomes more nutritious. I actually like the hakka noodles which are available road side, but I am afraid they do not cook them in healthy oil. Besides, they are not that easy to cook and are time consuming to make. That‘s why I have instant noodles.

Interviewer: How frequently do you have instant noodles, like how many times per week? When will you generally have it? Sudhir: I have it almost every day. I have it at night time for dinner during weekdays and for lunch and dinner during weekends It is easy to cook and fast. I can actually cook them in electric rice cooker. I need not have a stove for that. I cook in my electric kettle also sometimes.

Interviewer: How many different brands of noodles have you tried so far? Include hakka noodles also or any other thing which you might have tried. Can you compare them? Sudhir: Well, I have tried out a lot of different brands. I have had Maggi, Chings, Yippee, Smith & Jones, Top Ramen and then Tasty treat and many other local brands for the hakka noodles. I like Top Ramen‘s taste, but they are not always available and Top Ramen does not have atta noodles and does not give many offers. Maggi tastes alright, but it becomes sticky sometimes. They are good at marketing. That‘s why it is available at lesser price and everywhere. Sunfeast Yippee is fine, but it looks like a kid‘s brand to me with that colour of packaging. It somehow does not make me feel like buying it. Hakka noodles are good but time taking, unlike instant noodles. I do not have stove to make them. Instant noodles can be made in electric rice cooker or kettle. Koka
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noodles come in lobster flavour which is great, but they are pricey and not found everywhere

Interviewer: So, what exactly do you look for in instant noodles? Sudhir: They should be easy to cook. I should be able to cook in kettle or electric rice cooker. When I add vegetables or eggs it should blend well and the masala should be good for this. It should give me restaurant and homemade healthy feeling and the spicy taste should remember me of home cooked food. The price should be reasonable and I should be given a lot of offers and discounts.

Interviewer: Well, is there any particular brand which you like most? Which one do you buy most among instant noodles? Sudhir: I like Top Ramen‘s taste, but they are not always available and Top Ramen does not have atta noodles and does not give many offers. The one I buy most among instant noodles is Maggi.

Interviewer: Is there any particular reason why you prefer Maggi over others? Sudhir: Actually, Maggi is easily available compared to Top Ramen. Top Ramen tastes good, has a nice texture compared to Maggi but is not easily available.

Interviewer: So, if the other brands are available in the local store, will you buy them? Sudhir: Well, I will buy Top Ramen but not others. Once in a while I will buy Maggi atta noodles, but I will not buy others. Because, Maggi is something which has been there for a long time. You can be sure that it is safe. And if they say a packet of atta noodles is equivalent to 3 rotis, then they are really true and they will not harm you.

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Interviewer: Do you feel that it is different in taste from other noodles? Sudhir: No, to me they seem the same except Top Ramen which has a distinct taste. Maggi tastes alright, but it becomes sticky sometimes. They are good at marketing. That‘s why it is available at lesser price and everywhere.

Interviewer: Are you aware that there are various varieties of noodles available like Atta Veg Noodles, Chicken Masala Noodles etc? Have you tried them? Which one do you like best? Sudhir: I have tried all varieties available in market. They are OK once in a while but I think overall, the Top Ramen Tomato flavour is the best.

Interviewer: You mentioned that you would rather prefer Hakka Noodles over Maggi or instant noodles. Any reason? Sudhir: Well, if you are cooking the Hakka noodle, you can add lot of vegetables in it, you can prepare your own gravy, and basically it is a full-fledged dish. It tastes a lot better also, but obviously it is time consuming. In instant noodles, you get the same flavour of masala and soup. Interviewer: But, nowadays, Maggi and other brands have also come up with Vegetable Atta noodles and others. Have you tried them? Sudhir: Well, I have tried them and I actually like Maggi atta noodles only. They are healthy and taste and contain nutrients equivalent to three rotis.

Interviewer: In your mind what are the top 3 brands of noodles? Can you just compare them? Sudhir: Right now I think that Maggi, Sun feast, Top Ramen are the top 3 brands. Whenever I go to Big Bazaar, I will buy Top Ramen because it tastes better that Maggi when I add eggs to it. However, most of the time we get smaller packs only
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from local stores and I would prefer Maggi, because Maggi also gives some discounts. Maggi is good in taste and gives value for money. Otherwise, all of them can be cooked very easily and it is convenient.

Interviewer: What will you prefer supposing that Maggi is not available? Sudhir: Well, if Maggi is not available, I would eat boiled eggs and curd rice. I think the main point for me is that it should be easy to cook and can be cooked without stove and it should also give some offers.. Interviewer: Well, Sudhir, thank you very much for your time. We have been able to gain a lot of insight into the consumer minds with your interview.

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Interviewee 3

Details: Paryant Buch Gender: Male Age: >25 years

Interviewer: Do you eat instant noodles? Do you like it? Paryant: Yeah i do , and i love it. The taste is pretty good not as compared to the regular noodles, but still does justice to a sanck made in like five minutes . Another reason i like it is it is very easy to cook and doesn't take any time at all. Even if you take away the time factor and the ease of cooking i would still rather prefer maggi over other noodles such as may be the chinese hakka noodles etc. Interviewer: How frequently do you have instant noodles, like how many times per week? When will you generally have it? Paryant : I have it atleast twice a week during the night when i am hungry but short of time , hence to satisfy the instant hunger at night i just order one. My consumption of these noodles increases dramatically during submission and exam time that is to almost every night before the exam. In my family me and my brother both like it , we used to have it as our evening snack when I was back home. Interviewer: How many different brands of noodles have you tried so far? Include hakka noodles also or any other thing which you might have tried. Paryant: I have only tried top ramen and hakka noodles other than maggi . But taste wise i prefer maggi to both the brands mentioned above. I am not aware of many other brands and i try to stick to maggi only most of the times. The taste is pretty addictive and i am not aware of many other brands in the market . For me noodles means Maggi and i would continue having it till they keep manufacturing it.

Interviewer: So, what exactly do you look for in instant noodles? Paryant: The main factor that i consider when i want to consume noodles is the need to satisfy my hunger with a tasty snack instantly. Hence i give preference to the taste and time factor when buying my pack of instant noodles

Interviewer: Well, is there any particular brand which you like most? Which one do you buy most among instant noodles? Paryant: Maggi is my most preferred brand in the noodles segment. I love the taste and how is easy and fast it is to make . It is my clear preference for an ideal night time snack. Interviewer: Is there any particular reason why you prefer Maggi over others? Paryant: The best thing for me is the availability that no matter where you go you will always find Maggi even from hill tops to deserts. It doesnt matter where i go i am assured , even when travelling in places where the food might not suit me , i am mostly always assured of getting a maggi over there.

Interviewer: So, if the other brands are available in the local store, will you buy them? Paryant: I dont think so . I love maggi , i am addicted to the taste , so as long as they keep selling it , i will keep buying it , but may be once in a while for a change i try out top ramen , i cant distinguish much on the taste factor , but still i prefer to have maggi over any other brand any given day.

Interviewer: Do you feel that it is different in taste from other noodles?

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Paryant: Not to me . There is not much difference in taste , they taste the same more or less except in some varieties when there is some other added flavour , other than that i feel Maggi and Top Ramen taste almost the same.

Interviewer: Are you aware that there are various varieties of noodles available like Atta Veg Noodles, Chicken Masala Noodles etc? Have you tried them? Which one do you like best? Paryant: Yes i am aware of it , infact i have tried them all but still , the plain magic masala flavour beats them hands down .There is something about the taste that i cant explain , but it is very addictive. I have been consuming the same thing since i was a child and i still love the taste and would still prefer Magic Masala over any other flaovour. Interviewer: But, nowadays, Maggi and other brands have also come up with Vegetable Atta noodles and others. Have you tried them? Paryant: Yeah i have tried them . But i dont like their taste as much , they are alright sometimes to try for a different taste. I particularly don't like Vegetable Atta Noodles that much .

Interviewer: In your mind what are the top 3 brands of noodles? Can you just compare them? Paryant : Comparing the three brands Maggi Top Ramen in terms of the factors given below: (Rating on a scale of 1 to 5 , 1being the lowest preference) Maggi Cost Taste 4 5 Top Ramen 4 4

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Availability Brand Name Trust Health

5 5 5 2

4 3 3 2

Interviewer: What will you prefer supposing that Maggi is not available? Paryant: Well, if Maggi is not available, I would prefer Top Ramen Noodles. They are alright in terms of taste Else i would prefer hakka noodles. But perception about hakka noodles is that they are not easy to make , hence would prefer that such a situation of non availability doesn't arise at all. Strengths of Maggi Noodles as mentioned by the interviewee: Taste , Availability , Brand Name Weaknesses : Unhealthy, Bad Packaging – the crumbs often break in a 8 noodles pack hence prefer a single pack.

Interviewee 4

Details: Mishaal Kumar Sarawgi Gender: Male Age: >26 years

Interviewer: Do you eat instant noodles? Do you like it? Mishaal: Yeah i do , i like it. Like the taste but have it mostly because of the time constraints and lack of alternatives in the snacks segment being a vegetarian. But given a preference would much rather consume a sandwich or a parantha as its alternative considering their availability.
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Interviewer: How frequently do you have instant noodles, like how many times per week? When will you generally have it? Mishaal : I have atleast thrice a week . Prefer Vegetable Dal Aata Noodles (Maggi) , because though I think maggi is unhealthy but vegetable aata noodles seems to be a healthier option to me and I like its taste as well . Would much rather prefer to have it over the conventional magic masala noodles. I have it before or while watching a movie or as a night time snack. I buy 5 single packs on an average in a month. In my family only I like it . Interviewer: How many different brands of noodles have you tried so far? Include hakka noodles also or any other thing which you might have tried. Mishaal: I have only tried top ramen and Knorr's soupy noodles other than maggi . But taste wise i prefer maggi over both of them. Interviewer: So, what exactly do you look for in instant noodles? Mishaal:The main factor for me while buying a pack of instant noodles is the availability and ease of cooking , hence I prefer maggi in this segment and some how I end up buying a pack of maggi whenever I go out for shopping as I have been having it since my childhood , yet the taste still remains the same and I like it .

Interviewer: Well, is there any particular brand which you like most? Which one do you buy most among instant noodles? Mishaal: Vegetable Dal Atta Noodles (Maggi) is my most preferred brand in the noodles segment and I consume atleast 5 single packs every month. Interviewer: Is there any particular reason why you prefer Maggi over others? Mishaal: The main reason is the Taste , ease of cooking and the availability are value additions and it seems a healthier alternative ( the dal-aata noodles) as compared to the other noodles in the market.

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Interviewer: So, if the other brands are available in the local store, will you buy them? Mishaal: I dont think so , I would much rather prefer Maggi ( Dal Aata) rather than any other brand , though I prefer to have Knorr's soupy noodles and Chings once in a while for the sake of variety and to try out something different once in a while.

Interviewer: Do you feel that it is different in taste from other noodles? Mishaal: There is something different about its taste , that I can't explain exactly , but one thing is for sure that the taste is the same since I have been having it as a kid , and I used to love it back then also and still like it. It is definitely different when compared Knorr's soupy noodles or Chings.

Interviewer: Are you aware that there are various varieties of noodles available like Atta Veg Noodles, Chicken Masala Noodles etc? Have you tried them? Which one do you like best? Mishaal: Yes i am aware of it , in fact i have tried them all but still , I think the Vegetable Dale Aata noodles triumphs over them easily. Though I liked the tomato noodles variety a little but didn‘t like the Chicken Noodles at all Interviewer: In your mind what are the top 3 brands of noodles? Can you just compare them? Mishaal : Comparing the three brands Maggi Top Ramen in terms of the factors given below: (Rating on a scale of 1 to 5 , 1being the lowest preference) Maggi Cost Taste 4 4 Top Ramen 4 4 Knorr 3 4
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Availability Brand Name Trust Health

5 5 5 3

3 4 4 2

3 4 4 3

Interviewer: What will you prefer supposing that Maggi is not available? Mishaal: Would much rather consume parantha or a sandwich , but in terms of noodles I might prefer Top ramen noodles Suggestions by the interviewee: Launch masala variants such as Paneer Tikka or Manchurian Variety , another thing can be to introduce exotic flavours such as italian or spanish flavours.

Interviewee 5

Anu , 35 years old, Working @ Dell
Interviewer: Do you like instant noodles?

Yes
Interviewer: When did you have it first? Which one?

In Gulf, when she was a child, during her child hood days. 20 years back, her mom used to make for her. Now she is cooking for her child. She sees it as a healthy food because she adds eggs and vegetables to it.
Interviewer: What did she purchase now?

She purchased Sunfeast Yippee noodles.
Interviewer: Why did she prefer it?
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Because Sunfeast gives stickers free for noodles. Her son likes the stickers, the advertisements show the stickers and they are good. Her son asked her to get Sunfeast only.
Interviewer: How frequently do you have it?

Instant noodles twice a week. Generally her son has it. Occasionally, she and her husband also have it
Interviewer: How many packs do you buy on an average?

2 standard size packets in a week.
Interviewer: How many people in your family like noodles?

Majorly, her son likes. But, occasionally, she and her husband also have it
Interviewer: When do you generally have it?

For dinner.
Interviewer: Are you aware of different brands of noodles?

Yes.
Interviewer: How many different brands have you tried?

Maggii ,Sunfeast and Top Ramen.
Interviewer: Can you compare the brands you tried?

Maggii – Preference 1 – Good Quality, Used it in Gulf also, Good Taste,Value for money. Sunfeast – Preference 2 – Good Taste, they give stickers which her son likes. Top Ramen – Doesn‘t taste good
Interviewer: Why haven’t you tried other brands (if only has tried Maggi or other brands)?

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NA ( But prefers Maggii because she perceives Maggi to have high quality , buys Sunfeast only for stickers and advertisement effect on her kid. She will go back to Maggii once stickers are not given)
Interviewer: Are you aware of different types of products in noodles category like Atta Noodles, Foodles,Cup noodles?

Yes. But she does not like them.
Interviewer: What do you think are top 3 brands in the noodles market?

Maggii, Sunfeast, Top Ramen
Interviewer: What is the single best feature of Maggi?

Quality
Interviewer: What do you think are Maggi’s strengths?

Quality, Taste, Value for money
Interviewer: What do you do when Maggi is not available?

Eat Idly/dosa

Interviewee 6

Sharan , 15 years old, Student Interviewer: Do you like instant noodles?

Yes
Interviewer: When did you have it first? Which one?

7 years back, Maggii
Interviewer: What did he purchase now?

Maggii
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Interviewer: Why did he prefer it?

Just for a change. He likes variety every time.
Interviewer: How frequently do you have it?

Almost daily
Interviewer: How many packs do you buy on an average?

10 packets a week.
Interviewer: How many people in your family like noodles?

Everyone. 4 members in his family(He, his mom,dad, grand mother.
Interviewer: When do you generally have it?

Anytime
Interviewer: Are you aware of different brands of noodles?

Yes
Interviewer: How many different brands have you tried?

Maggii,Knorr,Wai Wai, Top Ramen,Smith n Jones,Horlicks, Chung‘s
Interviewer: Can you compare the brands you tried?

Almost all are same. Whatever new variety comes, he tries it and buys it . He buys Magii a little more frequently because other members in his family also eat it.
Interviewer: Why haven’t you tried other brands (if only has tried Maggi or other brands)?

NA
Interviewer: Are you aware of different types of products in noodles category like Atta Noodles, Foodles,Cup noodles?

Yes, but did not like them.
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Interviewer: What do you think are top 3 brands in the noodles market?

Maggii, Sun feast, Chung‘s
Interviewer: What is the single best feature of Maggi?

Fast to cook, easily available anywhere.
Interviewer: What do you think are Maggi’s strengths?

Value for money, okay taste, other family members like it.
Interviewer: Under what situations would you prefer other brands over Maggi?

Whenever there is a new flavour or product in market. He prefers variety and novelty.
Interviewer: What do you do when Maggi is not available?

Buy Pasta .

Point of Sale Interview - Excerpts

Customer name : Vishwanath,42 years How many people are there in your family? Among them, who eats noodles? 1 ―I have 3 people in my family. My 10 years old daughter eats Maggi. I and my wife also eat.‖ 2 How often do they eat and how often do they buy noodles? ―Weekly thrice. We buy monthly once 2 big packets of noodles (6in 1 combo packs of Maggi)‖. 3 How many family members actually like noodles? Who influences your choice for noodles?
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He buys mainly for her daughter. His daughter likes noodles. His daughter is the main influencer. 4 5 6 When was the first time you had noodles (which brand) ―2 years back‖, Maggi was the brand How did you come to know about noodles? TV Advertisements What do you look for while buying noodles (taste, health, fast cooking, price, convenience)? Price, fast cooking, tasty, evening snacks, vegetarian 7 8 9 Are you aware about other brands of noodles? Have you tried them? He tried other brands but taste wise he found no difference. What do you like about Maggi or other brand (whichever)? ―Maggi is tasty and price is cheaper, they give lot of offers‖ If noodles were not there then what will you buy? Traditional South Indian food like upma.

Customer name : Anup,30 1 2 3 How many people are there in your family? Among them, who eats noodles? 5 people, all eat noodles- Anup himself, his wife, his son, his father and mother. How often do they eat and how often do they buy noodles? Twice a week, 1 1/2 kg a month. How many family members actually like noodles? Who influences your choice for noodles? All like noodles. Anup himself likes Maggi and in turn his sons like Maggi. The preference has been passed down to his next generation also. 4 When was the first time you had noodles (which brand) Since Maggi was introduced in 1994, he has been eating. Noodles and Maggi are synonymous. Maggi means noodles. Maggi brand itself became synonymous with noodles. Like Dalda 5 How did you come to know about noodles? Advertisements.
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6

What do you look for while buying noodles (taste, health, fast cooking, price, convenience)? Convenience, Taste, Easy to cook

7

Are you aware about other brands of noodles? Have you tried them? Yes tried Yippee and other variants in Maggi also. But they switched back to Maggi Masala. Likes Maggi Masala only.

8 9

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

Customer name : Reshma, Housewife, 26 years old 1 2 3 How many people are there in your family? Among them, who eats noodles ? 3 people, All eat noodles- Reshma herself and her husband. How often do they eat and how often do they buy noodles? Twice a week, 10 packets (Standard size) + 4 small size packets a month. How many family members actually like noodles? Who influences your choice for noodles? All like noodles, all like yippee only. 4 5 6 When was the first time you had noodles (which brand) Sunfeast Yippee noodles, at her mom‘s place. But calls it Maggi How did you come to know about noodles? Her brother introduced her to noodles. He prefers noodles mostly for food. What do you look for while buying noodles (taste, health, fast cooking, price, convenience)? Healthy (Yippee is like rice), Taste, Small packs sufficient for kids 7 8 Are you aware about other brands of noodles? Have you tried them? Yes, tried them , but didn‘t like them What do you like about Maggi or other brand (whichever)? Vegetables already there so it is healthy, Masala is less and less spicy – can feed 1 year daughter.
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9

If noodles were not there then what will you buy? Semiyaa

Customer name : Amol, 24 years 1 2 3 How many people are there in your family? Among them, who eats noodles ? Living in PG accomodation. Buys for himself. Works in Accenture. How often do they eat and how often do they buy noodles? Twice a week, Weekly 5 standard packets of Maggi How many family members actually like noodles? Who influences your choice for noodles? NA. Bachelor. He buys for himself. 4 5 6 When was the first time you had noodles (which brand) In Mumbai, 4 years back, Maggi How did you come to know about noodles? Had it at friend‘s place in Mumbai. He didn‘t know how to cook then. What do you look for while buying noodles (taste, health, fast cooking, price, convenience)? Easy to make (just boiling water needed) 7 8 Are you aware about other brands of noodles? Have you tried them? Have not tried other brands. Not interested. Likes only plain Masala Maggi. What do you like about Maggi or other brand (whichever)? It is tasty and easy to make at night, he works in night shift and comes at 3 am in morning. Maggi is easy and tasty to make then. Sometimes, he eats Maggi in office also. 9 If noodles were not there then what will you buy? Milk, can have it easily in early morning.

Sandeep( student) 1
Section D, Group 5

Do you like instant noodles? How frequently do you have it? How many
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packs are do you buy on an average? How many people in your family like noodles? When do you generally have it? He eats instant noodles almost every day. He generally buys mega packs if there are any offers like price discounts. Everybody in his family likes instant noodles. They have it as a snack in the evening. 2 How many different brands have you tried? Why you haven't tried other brands? (if only has tried Maggi or some other noodle)Are you aware of the different types of products in the noodles category like Atta Noodles, Foodles, Cuppa etc? He tried almost every brand that came into the market except reliance product which came recently 3 Are you aware / have tried 3 different brands of noodles?Can you compare them Coming to comparison, basically he is a variety seeker he never sticks to a single brand, he just randomly chooses a brand . This time he picked up Maggi combo size packet. He said he is getting price advantage of buying larger packets over smaller ones. 4 5 What do you think are the top 3 brands in the noodles market? TopRamen, Maggi, yippee What do you think is the single best feature of Maggi/..? dislikes if any? Taste , he does‘t like maggi cup noodles, he found change in the taste and flavor when it is mixed with hot water. 6 Under what situations would you prefer some other brand/product over Maggi / preferred brand? If noodles are not available, his second preference is pasta which he finds it tastes good and more over the availability in different flavors. He needs variety in terms of flavor 7 Do you know someone who prefers a different brand / product? Why do think he prefers he said most of the people like maggi… Neha, Housewife
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1

Do you like instant noodles? How frequently do you have it? How many packs are do you buy on an average? How many people in your family like noodles? When do you generally have it? she likes to have instant noodles once in a week, mostly on the day when she feels too tired to cook after coming from office. She takes it as a meal. She frequently switches between maggi and yippee, this time she bought yippee.

2

How many different brands have you tried? Why you haven't tried other brands? (if only has tried Maggi or some other noodle)Are you aware of the different types of products in the noodles category like Atta Noodles, Foodles, Cuppa etc? She tried both yippee and maggi, Though she is aware of other brands, she never felt trying those brands.

3

Are you aware / have tried 3 different brands of noodles? Can you compare them? She finds tastes of both maggi and yippee is almost same. She said prices are almost same. The main factor that she likes about these instant noodles is that they can be made easily

4 5

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

6

Under what situations would you prefer some other brand/product over Maggi / preferred brand? She prefers oats, as they can be made easily and they are good for health as well.

7

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

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Company Interview
Interview transcript Interviewee: Jithin Prakash Position : Did summer internship at Nestle. He was the spokesperson from Nestle regarding Maggi noodles.

Interviewer: How is Maggi doing now? Maggi still rules the roost, by holding more than three-fourths of the ` 2,500 crore noodle market in the country, as of September 2012. Nestle has launched several new variants — one of the newer ones is Maggi Masala Damdaar. Maggi is being currently challenged by aggressive new entrants such as Sunfeast Yippee, Horlicks Foodles and Knorr Soupy Noodles and other local varieties. Interviewer: What is your current plan? Nestle have roped in Amitabh Bachchan as our brand ambassador. Nestle are also running a dealer engagement programme as part of its '2 Minutes Mein Khushiyan' campaign. This Khushiyan campaign includes a unique 'Khushiyon ka Badshah' engagement program with dealers.. Actually, Nestle is running the campaign among all its stakeholders-consumers, trade, business partners and employees. The idea is to bring all our partners to be a part of the campaign. Nestle also introduced bigger packet sizes by introducing various combo and multi packs. Interviewer: Why this plan?

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Nestle is offering incentives to buy company products in bulk. This reduces the trade‘s options of stocking rival brands. Nestle's trade incentive scheme for Maggi noodles is aimed at reviving its sales volumes, which declined 2% year-on-year in April-June quarter as the company focused more on pricing than volumes. Our discount scheme for Maggi noodles is possibly the first in 10-15 years. We want to grow the consumption also, hence the latest combo packs. Interviewer: Do you feel Maggi is susceptible to competition? Maggi's domestic volume growth has been decelerating since excessive price hikes is a primary reason, in our view. Getting volume growth back on track will be a big challenge 2012 is proving to be a very challenging year. We remain cautious thanks to persistent inflation, uncertain monsoons and economic volatility. We are offering trade incentives to distributors so that they reduce trade‘s options of stocking rival brands. We want to cement ourselves in the consumer mind space and hence we roped in Big B as our brand ambassador to build a more strong relationship with them now.

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Appendix II
Survey Results: (Excluding telephonic)
Age

40
Gender

Male Female

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

Maggi Top Ramen Chings Yippee Other
Which noodles brand do you most frequently buy ?

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Maggi Top Ramen Chings Yippee Other
What comes first in your mind when you hear the word Maggi ?

Snacks Fun Tasty Other
Which Maggi product (if any) do you like most ?

Masala Maggi Chicken Atta Noodles Other
1 thing that you don't like about Maggi

Taste Health Price Other
What do you prefer most while buying instant noodles?

Taste Health Price Ease of Cooking Other
How many different brands of noodles have you tried ?

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

2 14 16 25 0

Yes No Can't Say

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

Yes No

28 29

Have you ever shifted from one noodle brand to another ?

Yes No

21 35

If Yes kindly mention the brands and reasons for shifting ( 1 line) changeSeeking VarietyTop ramen,Yippee, foodles...just to check the taste and flavor.Just for fun. Not that I disliked it.Yippe! Its taste is different from Maggi!Availabilitytopramen, yippee, foodles......just for a change....to try out new flavor.Top Ramen Curry More spicyif taste is good than present noodlesFor a change of taste, shifted to top ramen for a whileFor a change of taste, shifted to top ramen for a whiletop ramen. Maggi noodles not available out of indiaqrjkdfhjkdsadfhnjkm,wqertyuiopodsdfvbhnjmMaggi is stickyMy son likes YipeeYippee, they are giving stickersYippee is cool for m... What are the top 3 brands in the noodles market ?

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Maggi Sunfeast Yippee Top Ramen Foodles Chings Other

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

Maggi Sunfeast Yippee Top Ramen Foodles Chings Other

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

Maggi Sunfeast Yippee Top Ramen Foodles Chings Other
What do you think is the best product in terms of health ?

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Maggi Sunfeast Yippee Top Ramen Foodles Chings Other
What do you think is the best product in terms of ease of making ?

Maggi Sunfeast Yippee Top Ramen Foodles Chings Other
What do you think is the best product in terms of value for money ?

Maggi Sunfeast Yippee Top Ramen Foodles Chings Other
What is your 2nd preferred noodles brand?

Maggi Sunfeast Yippee Top Ramen Foodles Chings Other

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

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

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