Consumer Buying Decision

Consumer decision making process plays an extremely vital role in understanding how consumers actually make their buying decision. Marketers should pay special attention to every aspect of consumer behaviour in terms of “who,what,when,where,how and why”.

A consumer’s buying decision is strongly influenced by the following factors: 

• Cultural factors:Cultural factors have the “broadest and deepest influence” on a consumer’s buying decision. As Maggi has been a household name for quite some time now,there is a possibility that the coming generations would also prefer Maggi noodles over other brands
•  Social factors: Social factors explain the external influence of groups,family and roles on our purchase decisions.Thus if the people around us are purchasing Maggi and have positive reviews about it,there is a good probability that we might also end up buying Maggi
• Personal factors: Every person is different and so is buying behaviour. I feel that the new advertisements and contests like “Me and Meri Maggi” that Maggi comes up with are very unique and this can be a reason for people to choose Maggi over others
• Psychological factors: Psychological factors that affect our purchase decision include motivation,perception,attitudes and beliefs. Some amount of thought goes into deciding whether to buy Maggi or not and hence psychology plays a vital role

   The Buying Decision Process: The Five-Stage model

       1.Problem Recognition :  After analysing the market in 1980’s Nestle identified the need for a quick            snack in India.  Thus Nestle became a pioneer in the instant noodles market by launching Maggi.  In                2005 and 2006 Maggi catered to the consumer’s need for a healthy snack and launched Maggi Atta              Noodles and Maggi Dal Noodles.

2. Information Search: Over the years Maggi has evolved as a brand and has become a household name. Consumers of all age groups are targeted in all of Maggi’s advertisement campaigns.

3. Evaluation of Alternatives: Maggi’s brand value,reputation and quality have built a special relationship of trust with the consumers and helps the consumer to choose Maggi over other alternatives.

4. Purchase decision: The strong consumer awareness and brand value that Maggi has created helps its consumers to prefer it over other brands. Maggi’s easy availability in local retail shops has made it a favourite among all age groups.

5. Post Purchase: Post purchase decisions are dependent on post purchase satisfaction and use. There are more chances of a consumer buying Maggi again if he is satisfied with it.

Customer Value

                                                    

Customer value is the benefit that a customer receives from a product or service in comparison to its cost. Customer value aims at delivering the desired goods and services at low prices and creating value for money for the customer.

Value to customer

From a midnight snack to an emergency meal, Nestle’s  Maggi has been a part of nearly everyone’s life. The value a customer derives out of Maggi are many and are as follows: 

• Nestle India Limited’s brand name and reputation
• Quick and easy to make noodles
• Saves a lot of time
• Tasty and healthy
• Light snack
• Comes in various flavours
• Value for money
•  Easy availability in mom and pop stores as well as big retail outlets
• Availability in various quantities
• Easy access to customer complaint number
• Nutritional content on packet

                                                  

Marketing

        

      Marketing is defined as the management process that identifies the needs and wants of the consumers and aims at satisfying those needs and wants by delivering the required products and services. Marketing directs the flow of goods and services from the producer to the consumer and thereby acts as a bridge.

     Maggi’s marketing strategy is to be considered as the best snacking option in India by putting together the values of convenience,taste and health. Initially Maggi had to face stiff competition from the ready-to-eat snack segments like biscuits,wafers,etc.when it was launched in India. Homemade snacks was Maggi’s major competition. Therefore to capture the market it positioned itself as a hygienic homemade snack,but this move did not work well as it was aimed at the wrong target group,the women. After an extensive research, the firm found that children were the biggest consumers of Maggi noodles.Soon a strategy was developed to capture the kids segment with various sales promotion tools. Moreover, Nestle could have easily positioned Maggi as a meal,but it did not, as a study had shown that Indian mentality did not accept anything other than rice or roti as meal. Nestle made an easy to cook snack that could be prepared in two minutes and the tagline “Fast to cook, Good to eat” was also in keeping with the position.

      Nestle’s main marketing objective was to promote Maggi as a healthy,ready to eat and convenient food. It took several years and lots of money to establish Maggi as a brand in India.In the recent past Nestle has promoted Maggi by sponsoring many kids events. On several occasions Nestle has done aggressive marketing by providing free samples of Maggi.

Maggi’s Penetration Strategies

• Promotional campaigns in schools
• Advertising strategies
• Conducting regular research
• Availability in different packages (50 gm, 100 gm, 200 gm, family pack)

Maggi’s Marketing Mix

   

	Create	Communicate	Deliver
Product	Easy and quick to make, tasty and healthy	Packaging says ‘2 minutes’	Quick snack
Price	Affordable	Value for money	Good quantity for less price
Promotion	Nestle’s brand value	“Me and Meri Maggi” contest and stories	Free distribution in schools
Place	Good distribution channel	Distribution of free maggi at various events and places	Available in almost all retail shops and malls

History-All About Maggi

• Do you remember the days when instant noodles was not a part of our lives? It was so very difficult to satiate hunger pangs back then. This need led to the birth of the perfect light snack-Maggi Two Minute Noodles
• Maggi’s history dates back to 1872. It was founded by Julius Maggi of the Maggi family in Switzerland
• The merger of Maggi and the Nestle family took place in 1947 and it was in 1982 that Nestle India Limited launched Maggi in India
• The launch of Maggi Two Minute Noodles introduced an entirely new food category of ‘instant noodles’ and created a buzz in the Indian packaged food market
• Since then Maggi’s highest growth has been seen in Asia,aided by the success of its instant noodles in India
• Maggi now enjoys a market share of about 86% and the brand has grown to an estimated Rs.200 crore and contributes to around 10% of Nestle India’s top line