2. INTRODUCTION TO MAGGI
▪ Maggi, an international
brand of seasonings, instant
soups, and instant noodles,
originated in Switzerland in
late 19th century. It was later
acquired by Nestlé in 1947.
3. COMPETITVE ANALYSIS
▪ Maggi was introduced in 1992 in
Pakistan. Maggi was more popular in
early days but Knorr, a brand of Unilever,
introduced instant noodles in 1993. Knorr
became more popular because of its
flavors and marketing strategy. At
present, Knorr currently holds 55%
market share of instant noodles in
Pakistan while Maggi stands at 35%..
▪ Shan Foods has also introduced Shoop
noodles in the market in 2012, it is less
popular in the market and sometimes
not available in various outlets. However,
it covers a handsome portion of market
share. Knorr noodles have become the
number 1 choice among kids over the
years.
4. CONTROVERSY
▪ Maggi - 2 Minute Noodles sales have drastically
declined, after various samples in India were discovered
to contain dangerously high dosage of MSG by the
Food Safety and Drug Administration (FDA) in Uttar
Pradesh, India.
▪ According to Reuters, around two dozen packets of
Maggi were revealed to be contaminated with lead,
along with evidence the taste enhancer, monosodaium
glutamate (MSG) added in the noodles.
▪ The news transpired across from the neighboring
country into Pakistan. Even though Nestle Pakistan
clearly stated the fact that it does not import any
MAGGI products from India, the association of the local
product being unsafe spread and lead to a major drop
in sales.
6. RESEARCH OBJECTIVES
To find out the
effectiveness of
communication
platforms to
promote the
brand message to
the target
audience What strategies to
be implemented
in order to
position Maggi as
‘safe’ in the mind
of consumer like
before?
Get consumer
insight to
understand
factors involved
in the change of
perception of
Maggi
To gauge brand
loyalty to regain
market share to
become the
market leader of
instant noodles in
Pakistan
8. The research is explanatory. It aims to investigate and explain the causes
and consequences of whether the presence of MSG led to drop in sales
of Maggi through inductive research. To understand the perception and
opinion of our customers, Qualitative research method will be used.
9. Consisting of our main target audience that is mothers and
teenagers, brand and product attributes and perceptions will be
discussed, where researcher gives them opportunity to interact
with each other and share their views.
11. GROUP
DESCRIPTION
It will be the group of women aged 25-40
years who are having children, these women
belongs from diverse backgrounds some
will be working women and some will be
house wives. The working will be further
divided in to full time workers and part-time
workers. Also these women will represent
different economic backgrounds.
This group will be comprised of boys and
girls aged 13-19 years belongs from
different economic backgrounds.
Along with this, in-depth interviews will be
conducted with the mothers and teenagers
(potential buyers) to understand their
knowledge, behavior, attitudes and perceptions
about the brand and product, to find out if they
relate Maggi as being an ‘Indian’ product or are
they aware of the local production, also what
factors makes the product safe to consume.
GROUP
2
GROUP
1
12. Most of the respondents had stopped eating Maggi. All respondents claimed that they had overall reduced instant noodle consumption but
not completely stopped using it. Instant noodles are used as an in between snacks, in between lunch and dinner. Teenagers favored Knorr
more as they thought it more soupy and tasty.
Respondents (Mothers) interchanged reference to instant noodles as Maggi, showing a high brand association in its category and TOM. Due
to media, some people are aware of the effects of MSG on health and do not want to feed any product containing MSG to their children. They
make sure to check the packaging before purchasing it. Where health of their family members is concerned, respondents strongly opposed
Maggi as it contained harmful ingredients leading to cancer (not necessarily only MSG, some thought it plastic and lead) and also called the
brand careless due to its tardiness to not respond effectively to communicate the required information about product safety. People are unsure
whether the controversy is genuine or a case of market competition. Once the brand image is tarnished it’s difficult for consumers to trust it
again specially in the presence of a strong competitor. Relaunching Maggi, with claims of removing MSG and backing of Nestle, would not be
effective as mothers are doubting the credibility of the brand. Introducing new flavors might add an incentive. The purchasing power
belonged to mothers as they know what’s best for their kids and they are the one that buy the groceries but teenagers also give their
suggestions of which brand to purchase.
Some other factors were also highlighted like the quantity of the product being far less than Knorr. Communication plays a critical role in
today’s promotional activities. Knorr ads are seen more often on TV with a catchy jingle which appeals to kids, whereas there was no recall of
any Maggi ad. The mothers were able to recall Maggi as it was the instant noddle during their time so they were able to remember Maggi due
to its unique yellow packaging where as teenagers were able to recall Knorr’s jingle “KNORR ISS KA MAGIC HE AUR”. Local channels were not
preferred and there was more exposure to international TV channels.
FINDINGS
13. Since it was an experimental research, we have conclude that MSG is
not the only reason for the loss of market share of MAGGI, and there
are other factors which need to be researched
Our research also unfolds that the category of instant noodles are
being termed as “unhealthy” rather than a specific noodle brand
We propose that Maggi could focus on product innovation (organic
line) and communication in order to gain back the lost trust and in turn
brand equity
RECOMMENDED COURSE
OF ACTION