CONSUMER BEHAVIOR OF INSTANT NOODLES MAGGI

PRESENTED TO:
Lect.Mr.AAmir Sheikh

MOHAMMAD ALI JINNAH UNIVERSITY

SUBMITTED BY
M.RIZWAN KHALID
SP15-EX-0057
DATE:16th APRIL, 2016

Table of content
1. ACKNOWLEDGEMENT---------------------------------------------------------4
2. EXECUTIVE SUMMARY--------------------------------------------------------5
3. INTRODUCTION------------------------------------------------------------------6
4. RESEARCH PROCESS----------------------------------------------------------7-9
5. DATA ANALYSIS ----------------------------------------------------------------10
6. QUESTION NO 01-----------------------------------------------------------------11
7. QUESTION NO 02-----------------------------------------------------------------12
8. QUESTION NO 03-----------------------------------------------------------------13
9. QUESTION NO 04-----------------------------------------------------------------14
10.QUESTION NO 05-----------------------------------------------------------------15
11.QUESTION NO 06-----------------------------------------------------------------16
12.QUESTION NO 07-----------------------------------------------------------------17
13.QUESTION NO 08-----------------------------------------------------------------18
14.QUESTION NO 09-----------------------------------------------------------------19
15.QUESTION NO 10-----------------------------------------------------------------20
16.CONCLUSION AND RECOMMENDATIONS---------------------------21-22
17.REFERENCES----------------------------------------------------------------------23
18.BIBLOGRAPHY-------------------------------------------------------------------24
19.APPENDICES-------------------------------------------------------------------25-26

ACKNOWLEGEMENT
All glories and honours are for Almighty ALLAH, who bestowed us with profound perseverance and ability
to accomplish this work.

I would like to take this opportunity to thank and to express our profound gratitude and deep regards to our
Lecturer Mr.AAmir Sheikh for his exemplary guidance, support and constant encouragement throughout the
course of this report.
I also take this opportunity to thank all the group members and friends for their cordial support and
cooperation without which working on this report would not have been successful.
I are highly obliged to our teachers and all sentient beings for the valuable information provided by them in
their respective fields. We are grateful for their cooperation during the period of our research.

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

EXECUTIVE SUMMARY
This report of marketing research is focusing on the Statistical Inference of Maggi based on customer
experiences and how they are influenced by the performance. Our main objective of research is how the

strategies play the vital role to increase the market share and brand image of which is also our research
hypothesis. So by conducting questionnaire based interviews with the consumer of both the products we aim
to pin point the most competitive marketing strategies. In our research we have collected primary data
through surveys and developed the questionnaire to gather the data we needed to achieve our objective. For
secondary data we have used websites and articles to get the right direction. We have summarized the
respondents experiences and performances of Maggi in the form of observed value. From our survey
research, we have found that 52% of the respondents prefer Maggi noodles over other brands of instant
noodles, and according to 73% of respondents Maggie noodles are affordable. Most of the respondents want
increased quantity in packets. We have found that television advertisements are a major factor in purchase
decision compared to other mediums. From our data analysis and interpretations, our recommendations for
Maggi brand are that price and taste are the most important factors, so to launch different sizes of packets in
all variants for those who cannot afford high prices, must be in action plan of Maggi. Maggie should bring
innovation in product, packaging and pricing through investment in market research. They must also launch
health awareness campaigns; publish health information etc. to educate the customers about benefits of
healthy foods. Maggi should focus on the kids for its promotions and advertising activities like Knorr gang
adventure. Maggi should focus on frontal strategies by improving their product quality and quantity and by
effective promotion. From our survey research we have found that majority of consumers in Pakistan prefer
Knorr and Maggi for instant noodles while rest of the brands have a very low relative market share like
Shan's Shoop noodles and others.

INTRODUCTION:
This term report of Statistical Inference is on the topic of Marketing and promotional strategies on the brand
performance. It is the study of brand image and market share of two products based on customer experiences
and how the marketing and promotional strategies have influenced their performance. The brands on which
we have conducted our research are from the instant noodles sector of Pakistan, these are Maggi and Knorr.

Maggie has been serving the market since 1992 in Pakistan, interestingly, Maggi in spite of being the
pioneer in this category and the market leader in many countries internationally takes second place to Knorr
which is the market leader with a 45% market share. Maggi presently has a 52% market share, with the
remaining small percentage taken up by Shan Shoop and some other imported brands such as Indomie
(From Indonesia) and others.

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

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

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

STATEMENT OF PROBLEM:
The research presented here addressed the problem of how to increase revenue and market share of Maggie
Noodles in a competitive market of Pakistan.
In 2015, Unilever Pakistan Ltd and Nestl Pakistan Ltd will remain as leading players in noodles, where
Unilever Pakistan Ltd is set to lead with 47% value share and Nestl Pakistan Ltd will closely follow with
52% value share. The two companies offer a variety of flavors appealing to the local palate, and were
available across retail outlets.

NULL HYPOTHSIS: Brand, Taste, flavour, price and advertisement play vital role to increase the
market share of Maggi.

ALTERNATE HYPOTHSIS: Brand, Taste, flavour, price and advertisement does not play vital role to

increase the market share and brand image of Maggi.

Our research hypothesis is a one tail test for proportion vs hypothesized value

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

DATA COLLECTION PLAN

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

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

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

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

They also like instant noodles because of convenience of preparation

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

Sampling Plan:
Our sampling plan includes:
a) Sampling frame
b) Sample unit
c) Sample size
d) Sampling technique
a) Sampling Frame:
A sampling frame is a collection of data from a sample; a technique is used when a population or data
sample is too large to be studied. The sampling frame used is usually selected by a survey planner. It is a list
of all those with in a population who can be sampled, and may include individuals, households or
institutions. The method however doesn't take all accounts of the population into study either because of
faulty frames or lack of an apparent frame to study.
Our sample frame is Karachi for this particular research.
b) Sampling Unit:
The sampling unit is the basic unit containing the elements of the population to be sampled. It may be the
element itself or a unit in which the element is contained.
Sampling unit in our research are the students of university and the people visiting shopping malls located in
Gulshan e Iqbal, North Nazimabad and Tariq road.
c) Sample Size:
Sample size is the number of observations used for calculating estimates of a given population. Sample size
determination is the act of choosing the number of observations or replicates to include in a statistical
sample. The sample size is an important feature of any empirical study in which the goal is to
make inferences about a population from a sample. In practice, the sample size used in a study is determined
based on the expense of data collection, and the need to have sufficient statistical power
Our sample size for this research is based on 100 consumers of instant noodles using Knorr and Maggie
noodles.
d) Sampling Method:
Majorly single Population test of sampling technique is used in which I cover the different factors and their
observed proportions.

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

DATA GATHERING AND ANALYSIS

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

METHODOLOGY:
The research was carried out in the form of a survey. This will include primary research in addition to
secondary research as stated below. The survey research method was a descriptive research design. Each
respondent was provided with Questionnaire. The sample was selected by a non-random sampling method.
The survey will address the following information area:
Information Areas:
The objective as spelt out can be elaborated into specific information areas to be studied.

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

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

Do they consider noodle as a healthy product?

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

DATA ANALYSIS:
Statistical Analysis
Population Test
Computed Value
Critical Value at 5% sig
level one tail test

Maggi Brand Product

Marketing Promotional Strategy
Image
Strategy
-0.80
-0.72
-0.66
-1.6450

-1.6450

-1.6450

From the above testing, observed value for brand image is -0.80 which lies in the accepted region related to
the table value of -1.6450 so we accepts the null hypothesis that brand image of Maggi does play role as
compared to Knorr.
From the above testing, observed value for product marketing strategy is -0.72 which lies in the accepted
region related to the table value of -1.6450 so we accepts the null hypothesis that product marketing
strategy of Maggi does play role in increasing market share as compared to Knorr.
From the above testing, observed value for promotional strategy is -0.66 which lies in the accepted region
related to the table value of -1.6450 so we accept the null hypothesis that promotional strategy of Maggi
does play role in increasing market share as compared to Knorr.

Observation:

48%of the respondents prefer Maggi noodles over other brands of instant noodles.
According to 67% respondents Maggi noodles are affordable.
According to 33% respondents Maggi noodles are unaffordable.
80%of respondents preferred Maggi noodles because of their taste
19% percent of the respondents purchase Nestle Maggi noodles for its quality
12%respondents buy Nestle Maggi noodles because of convenience to prepare them
12%respondents buy Nestle Maggi noodles because it is a hygienic product
06% of the respondents purchase nestle Maggi noodles whenever needed.
Television advertisements are a major factor in purchase decision compared to other Medias.
75% of consumers think that advertising the Maggi noodles brand effectively creates an impact on
products sale
75% of the respondents are aware of price of Nestle Maggi noodles.
The foremost influencer in purchase decision of the respondents is children.
35%respondents prefer Nestle Maggi noodles because of their property of non-stickiness.
For 78% of the respondents a vast range of flavors is one of the most important parameter in
choosing instant noodles.
Most of the respondents want increased quantity of noodles in packets. They want a large noodle
cake inside the noodles pack.

10

Q1.Which brand of
instant
noodles
you purchase the
most?

11

A. Shan Shoop
B.Knorr
C.Maggi
D.Other

44

48

D
1

HO = 0.52
Ha < 0.52
P^ = 0.48

Hypothesis test for proportion vs hypothesized value

Observed

Hypothesized

0.48

0.52

p (as decimal)

48/100

52/100

p (as fraction)

48.

52.

100

100

0.05

std. error

-0.80

.2117

p-value (one-tailed, lower)

0.3821

confidence interval 95.% lower

0.5779

confidence interval 95.% upper

0.0979

Result:

margin of error

Do not Reject HO
Claim is in significant

12

Q2.Why
do
you
purchase
this
brand?
A.Taste
B.Price
C.Health
D.Availability
E.Brand Image
F.If Other, please
specify

A
80
HO = 0.82
Ha < 0.82
P^ = 0.80

B
2

D
5

E
9

F
3

Hypothesis test for proportion vs hypothesized value

Observed
0.8
81/101
80.8
101

Hypothesized
0.82
83/101
82.82
101
0.0382
-0.52
.3004
0.722
0.878
0.078

Result:

C
1

p (as decimal)
p (as fraction)
X
n
std. error
z
p-value (one-tailed, lower)
confidence interval 95.% lower
confidence interval 95.% upper
margin of error

Do not Reject HO
Claim is in significant

13

Q3. What Factors

drive you most
towards
your
choice?
A.Convenience
B.Hygiene
C.Taste
D.Quality
E.No idea

B
12

12

51

19

E
6

HO = 0.55
Ha < 0.55
P^ = 0.51

Hypothesis test for proportion vs hypothesized value

Observed

Hypothesized

0.51

0.55

p (as decimal)

51/100

55/100

p (as fraction)

51.

55.

100

100

0.0497

std. error

-0.80

.2107

p-value (one-tailed, lower)

0.412

confidence interval 95.% lower

0.608

confidence interval 95.% upper

14

0.098

Result:

margin of error

Do not Reject HO
Claim is in
significant

Q4. Have u
ever
tried
Maggi instant
noodles?
Yes
No

A
85

B
15

HO = 0.85
Ha < 0.45
P^ = 0.85

Hypothesis test for proportion vs hypothesized value

Observed

Hypothesized

0.85

0.86

p (as decimal)

85/100

86/100

p (as fraction)

85.

86.

100

100

0.0347

std.
error

15

-0.29

.3866

p-value (one-tailed, lower)

0.78
0.92
0.07

Result:

confidence interval 95.%

lower
confidence interval 95.%
upper
margin of error

Do not Reject HO
Claim is in
significant

Q5.Do
you
know Maggis
slogan?
A.Mita
do
bhook
B.Taste
bhi
health bhi
C.Iska
magic
hi aur

A
13

B
63

C
24

HO = 0.69
Ha < 0.69
P^ = 0.63

16

Hypothesis test for proportion vs hypothesized value

Observed

Hypothesized

0.63

0.69

p (as decimal)

63/100

69/100

p (as fraction)

63.

69.

100

100

0.0462
-1.30

.0973

p-value (one-tailed, lower)

0.5354

confidence interval 95.% lower

0.7246

confidence interval 95.% upper

0.0946

Result:

std. error

margin of error

Do not Reject HO
Claim is in
significant

Q6.Do
you
think
attractive
advertisement
may
help
Maggi
to
increase their
sales?

A.Yes
B.No

17

C.May be
A
75

B
9

C
16

HO = 0.78
Ha < 0.78
P^ = 0.75

Hypothesis test for proportion vs hypothesized value

Observed

Hypothesized

0.75

0.78

p (as decimal)

75/100

78/100

p (as fraction)

75.

78.

100

100

0.0414
-0.72

.2345

p-value (one-tailed, lower)

0.6651
0.8349
0.0849

Result:

std.
error

confidence interval 95.%

lower
confidence interval 95.%
upper
margin of error

Do not Reject HO
Claim is in
significant

18

Q7.Do you like to try

new flavours?

A. Yes
B.No

78

22

HO = 0.81
Ha < 0.81
P^ = 0.78

Hypothesis test for proportion vs hypothesized value

Observed

Hypothesized

0.78

0.81

p (as decimal)

78/100

81/100

p (as fraction)

78.

81.

100

100

0.0392
-0.76

.2222

p-value (one-tailed, lower)

0.6988
0.8612
0.0812

Result:

std.
error

confidence interval 95.%

lower
confidence interval 95.%
upper
margin of error

Do not Reject HO
Claim is in
significant

19

Q8.Do you know the price of a Maggi noodle pack ?

A. Yes
B.No

A
7
5

B
25

HO = 0.80
Ha < 0.80
P^ = 0.75

Hypothesis test for proportion vs hypothesized value

Observed

Hypothesized

0.75

0.8

p (as decimal)

75/100

80/100

p (as fraction)

75.

80.

100

100

0.04

std.
error

-1.25

.1056

p-value (one-tailed, lower)

20

0.6651
0.8349
0.0849

Result:

confidence interval 95.%

lower
confidence interval 95.%
upper
margin of error

Do not Reject HO
Claim is in
significant

Q9.Do you think prices of Maggi noodle are affordable?

A.Yes
B.No

A
6
7

B
33

HO = 0.73
Ha < 0.73
P^ = 0.67

Hypothesis test for proportion vs hypothesized value

Observed

Hypothesized

0.67

0.73

p (as decimal)

21

67/100

73/100

67.

73.

100

100

0.0444

std.
error

-1.35

.0883

p-value (one-tailed, lower)

0.5778
0.7622
0.0922

Result:

p (as fraction)

confidence interval 95.%

lower
confidence interval 95.%
upper
margin of error

Do not Reject HO
Claim is in
significant

Q10.Who decides which brand of noodles to buy in

your household?
A.Children
B.Housewife
C.Parents
A
68

B
6

C
26

HO = 0.71
Ha < 0.71

22

P^ = 0.68

Hypothesis test for proportion vs hypothesized value

Observed
0.68
68/100
68.
100

Result:

Hypothesized
0.71
71/100
71.
100

p (as decimal)
p (as fraction)
X
n

0.0454
-0.66
.2543

std. error
z
p-value (one-tailed, lower)

0.5886
0.7714
0.0914

confidence interval 95.% lower

confidence interval 95.% upper
margin of error

Do not Reject HO
Claim is in
significant

CONCLUSION:

Analysis Theme

Input for Strategy

Action Plan

Price and Taste are the most

important factors, as peoples
disposable income is slowly
decreasing
Consumers highly prefer quality
and easy availability

Dont compromise on either of Launch different sizes of packets in

them
all variants in mainly sub-urban
areas, for those who cannot afford
high prices of chicken.
Ensure quality standards are Increase incentives to keep the sales
met and increase availability
people motivated. Higher trade
margin to increase visibility
Taste is the single-most important Continue promoting difference Launch BTL activities. Target

23

deciding
factor
in
preferences
Addition of new flavors

brand in taste
Ensure the addition of new
flavors to retain consumers
interest in the product

Health and hygiene

Never compromise on health

standards
Convenience is the key
Offer easier and more
convenient solutions
Concepts are easily replicating in Continue promoting difference
the industry
in Taste and Quality

schools and colleges and cafeterias

to develop the taste of consumers
Keep track of taste preferences of
consumers. Come up with different
sizes of packs in variants like
Chatpatta, spicy, Thai flavors,
Mexican flavors etc.
Continue investing in technology and
maintain the quality
Convenient packets: family size
packs
BTL activities such as promotional
campaigns at institutions cafeterias
and canteens can be used for these

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

Product line extension with variants for varied markets.

To gain maximum leverage in terms of profit, the company should pay emphasis on teenagers.
Advertising is the key to success. Targeting these segments will not only enhance the companys
profit margins but also it will leverage the brand image of Maggi.
Innovation in Product, packaging and pricing of Maggi Noodles through investment in market
research.
Launching health awareness campaigns, publish health information, sponsor health camps etc. to
educate the customers about benefits of healthy and hygienic foods.
To gain more market share and brand image Maggi also should emphasize on effective marketing
and promotion strategies of products other than instant noodles like Maggi cubes, ketchups, soups
etc.
Maggi also should focus youngsters for its promotions and advertising activities, Maggi should
launch kids program like Knorr gang adventure. Its sales promotion activities would also be
increased by providing more incentives and gift items to children.
Mostly customers prefer chicken flavor in instant noodles so Maggi must introduce new and exciting
flavors range in chicken flavor.
Must change its packaging. Maggi should focus on its packaging and provide more attractive
packaging to its customers who would be more appealing to children and mothers.
Maggi should increase the quantity of its packets and should also provide packets of different sizes to
target families.
Maggi should focus on frontal strategies by improving their product quality and quantity by
effective promotion, advertisement and affordable pricing strategies.
Maggi also should follow bypass strategies by improving their technologies as compared to Knorr so
to achieve cost leadership strategies and save cost of manufacturing as far as possible. Maggi should

24

also diversify their product range into unrelated products like introducing Chinese, Mexican or
Italian spices range. (Condiments).
Maggi should engage customers more, through evolving mediums like social networking sites, road
shows, or moving hoardings with the ad of the product etc. This would enable the Maggi Brand
Managers to listen to the reviews and views from their customers and improvise their marketing
strategy.
There must be extensive media advertising in order to increase the consumers familiarity with new
product launches.
Magi should also involve product demos and samplings for new products and flavors at busy places
like malls and market places or residential complexes.
It can increase product penetration by increasing its products available not only in supermarkets,
hypermarkets and journal stores but also in small public stores and shops.
Magi should implement General promotional strategies in order to increase brand visibility.
It should also emphasize on events like, Online Maggi recipe Challenge and innovative entries must
be compiled into e-cookbook.
Launching Maggi goodies like Computer Wallpapers and Screensavers would increase Brand recall.

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

Shan Shoop

b.

Knorr

c.

Maggi

d.

Other

27

Why do you purchase this brand?

a.

Taste

b.

Health

c.

Price

d.

Availability

e.

Diverse Range

f.
g.

Brand Image
If Other, please specify
_______________________
What Factors drive you most towards your choice?

a.

Convenience

b.

Hygiene

c.

Taste

d.

Quality

e.

No idea

4)

Have u ever tried Maggi instant noodles?

Yes

No

Do you know Maggis slogan?

a.

Mita do bhook

b.

Taste bhi health bhi

c.

Iska magic hi aur

6)
Do you think attractive advertisement may help Maggi to increase
their sales? (Yes/No/May be)

7)

08)

Do you like to try new flavours? (Yes/No)

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

28

Do you think prices of Maggi noodles are affordable? Why?

Why not?
Who decides which brand of noodles to buy in your household?
a.

Children

b.

Parents

c.

Housewife

29