Consumer Buying Process of the Product Maggi

Submitted To,

Prof. Neil Sequeira

Prepared By,

Parvaz Shaikh

MMS-Marketing

Roll no.74

Abstract

The main aim of this report is to explain what is Consumer Behaviour, the process that goes

behind it and the effect of advertising on it.

Consumer Buying Behaviour

Possibly the most challenging concept in marketing deals with understanding why buyers do

what they do (or don’t do).

But such knowledge is critical for marketers since having a strong understanding of buyer

behavior will help shed light on what is important to the customer and also suggest the important

influences on customer decision-making. Using this information, marketers can create marketing

programs that they believe will be of interest to customers.

Consumer behavior is the study of the processes involved when individuals or groups select,

purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

It is the study of how people buy, what they buy, when they buy and why they buy. It blends

elements from psychology, sociology, socio psychology, anthropology and economics.

It attempts to understand the buyer decision-making process, both individually and in groups. It

studies characteristics of individual consumers such as demographics, psychographics, and

behavioral variables in an attempt to understand people's wants. It also tries to assess influences

on the consumer from groups such as family, friends, reference groups, and society in general.

The study and knowledge of consumer behavior helps firms and organizations to improve their

marketing strategies and product offerings.

There are many factors that can affect the purchasing process of a person. The number of

potential influences on consumer behavior is limitless. However, they can be classified into three

main categories - Internal, External and Marketing.

Internal factors include – Attitude, Knowledge, Personality, Lifestyle, Roles, Involvement etc.

External factors include – Culture, Groups and Situations.

Marketing factors include – Product, Price, Promotion, Distribution and Service.

Consumer Buying Process

There are stages in the consumer buying process.

Stage 1 - Problem Recognition

This is where the consumer realizes or becomes aware that he is lacking in something that he

wants.

Stage 2 - Information search

In this step, the consumer tries to find out all the possible information on the product or service

that is desired by him/her.

Stage 3 - Evaluation of Alternatives

Here, the consumer will have a look at the other options available, in case he can find something

that is more suited to him/her.

Stage 4 - Purchase decision

Here the consumer finally comes to a decision as to which product to purchase.

Stage 5 – Purchase

In this step the consumer actually goes out and buys or purchases the product or service sought

by him/her.

Stage 6 - Post-Purchase Evaluation

Here, the consumer reflects back on the product that he has purchased, whether he actually

requires it, was it worth the price paid, how useful will it be in the long run etc.

Effect of Advertising on Consumer Buying Behaviour

Many organizations explore various options in order to achieve success.

Economists view advertising as having a significant effect on consumer behavior. And in the

long run, it can lead the organization to competition.

Based on the understanding regarding advertising, the approach is rooted in an organization’s

search for the right answer on the effects of the competition.

Consequently, the accepted basic role of advertising is to provide consumers with the right

amount of information regarding the product or service, which is related to the objective of the

competition and that is to deliver consumer satisfaction.

It is a simple marketing concept viewed by business analysts as an effective strategy for an

organization to gather and keep the loyalty of the consumer. The use of advertising within an

organization is growing and various researches conducted reiterate its importance as an

undeniable factor that can influence the buying behavior of consumers.

We shall be taking a closer look into this factor by taking the example of the popular and famous

product of Nestle i.e., Maggi Noodles.

Maggi Noodles

Consumer Decision making Process

Consumer Decision Making Process, this basic psychological process plays an important role in

understanding how consumers actually make their buying decision. Marketers must understand

every fact of consumer behavior in terms of “who, what, when, where, how and why”. Smart

companies like MAGGI try to fully understand the consumer’s buying decision process – all

their experiences in learning, choosing and using of the product.

Maggi has always considered the following steps:

1 Problem Recognition

This is the first stage of the Buying Decision where the buyer recognizes a problem or need. The

need can be triggered by internal or external stimuli which a marketer must identify by gathering

information from number of consumers. They can then develop marketing strategies that trigger

consumer interest.

Nestle after carefully analyzing the market, identified the need for a quick snack in India.

They adopted the first mover strategy and launched Maggi in India in the year 1982 as an

instant fast food.

Thereafter, Nestle recognized the consumer’s need for Maggi in different sizes and

introduced the 50gms, Double Pack and Super Saver Pack (s).

Later on in the years 2005 and then 2006, consumer’s need for a healthy instant food was

catered by launching Maggi Atta Noodles and Maggi Dal Noodles. These again emerged as

successful products and were widely accepted by masses.

Further to suffice the need for different taste, Maggi Rice Mania was brought in the market in

Shahi Pulao, Chilli Chao and Lemon Masala flavors.

2 Information Search

An aroused customer will be inclined to search for more information. At this level, a person

simply becomes more receptive to information about a product. There are four major information

sources which are of key interest to the marketer. These are the personal sources (family, friends,

and acquaintances), commercial sources (advertising, websites, packaging and displays), public

sources (mass media, consumer rating organizations) and experiential sources (handling,

examining and using the product).

MAGGI has over the years well established itself in the market and has now become a

household name. This has helped the brand gain popularity through word of mouth.

Maggi’s Mass Advertising Campaigns targeted consumers of all ages. Their advertisements have

highlighted that Maggi is a good alternative available with the consumers when it comes to

having a quick snack.

3 Evaluation of Alternative

Once all the consumers gather all the information he then evaluates the various option available

to him. When evaluating the potential alternatives, consumer uses two types of information the

first is the “list” of brands from which they plan to make their selection and the second is the

criteria from which they plan to make their decision.

Beliefs and Attitude: Evaluations often reflects beliefs and attitudes. And these are acquired by

experiences and learnings.

MAGGI has always provided its consumers with something new from time to time which has

developed a good belief in the brand and thus has helped them to choose them from their other

alternatives. Their competitors like top ramen always find it difficult on the evaluation front with

magi because of strong association of consumers with it.

Awareness set is                   

Maggi

Tom Ramen

Cup of Noodles

Chings

Foodles (Horlicks)

So out of the above awareness set the consumers decides to choose Maggi because after

analyzing the different parameters of the brand Maggi was chosen as the best alternative among

the rest leading to its maximum market share.

4 Purchase Decision

In the evaluation stage the consumer forms preferences among the brands in the choice set, the

consumer may also form an intention to buy the most preferred brand .In executing a preferred

intention the consumer takes up five sub decisions

  Brand

  Dealer

  Quantity

  Timing

Payment Method

In some cases consumer may decide not to formerly evaluate each and every brand; in other

cases intervening factors may affect the final decision.

Because of the strong consumer awareness about the brand MAGGI, consumer generally prefer

Maggi out of all the available brands , due to the mass distribution strategy adopted by Maggi,

any consumer can easily purchase it from their local grocery store without wasting much of

his/her time in searching for the  product , Maggi comes in various sizes like single , double and

the supersaver packs so depending upon each individuals need Maggi is catering each and every

segment of the society not to mention that as the size increase the saving on each pack increases.

5 Post Purchase

After the purchase the consumer might experience dissonance that stems from noticing certain

disquieting features or hearing favorable things about other brands and will be alert to

information that supports his/her decision. Marketer must monitor

Post Purchase Satisfaction

Post Purchase Action

Post Purchase Product Uses

Post Purchase Satisfaction

Satisfaction is a function of the closeness between expectations and the product’s perceived

performance, if performance falls short of expectations the consumer is disappointed and if it

meets the expectation the consumer is satisfied and if it exceeds the expectations then the

consumer is delighted.

Post Purchase Action

Satisfaction or dissatisfaction with the product will influence subsequent behavior if the

consumer is satisfied he will exhibit a higher probability of purchasing the product again. The

satisfied customer will also tends to say good things about the brand to others, marketers

says “our best advertisement is the satisfied customer”.

Post Purchase Use

Marketer should also monitor how buyers use and dispose of the product. A key driver of sales

frequency is product consumption rate – the more quickly buyers consume a product the sooner

they may be back in the market to repurchase it.

Internal & External Influences affecting Consumer Behavior

1 Internal Influences

Motivation and Involvement

Motivation is that internal force which arouses or activates some need and provides direction of

behavior towards fulfillment of the need. A motivation maybe physiological in nature directed

towards fulfillment of biological needs such as hunger and thirst, other motivations are

psychological in nature focusing on the satisfaction of psychological desires such as the desire

for seeking status, job satisfaction, or achievement. Everyone has both physiological and

psychological motivations, but we fulfill them in different ways. One consumer satisfies his

thirst by drinking water, the second quenches it by having a Thumbs Up, the third drinks Bisleri

Mineral Water while a fourth prefers soda. For one consumer, buying a Deluxe Maruti car is a

way of seeking status, another satisfies his want for status by becoming a member of the best

club in town, while for a third having a credit card is a status symbol.

The reason why we adopt different methods of satisfaction of our motivations is because of

the differing level of personal involvement in various activities. Involvement refers to the

personal relevance or importance of a product or service that a consumer perceives in a given

situation. For a professional photographer the choice of a camera is a consumer behavior

situation of involvement because the camera is his most important professional tool. The

photographer would be motivated to buy the best possible camera, irrespective of the price tag.

For another consumer, a camera is just a means of recording important family events and just

about any camera which is convenient to handle would fill the need.

High involvement leads to a highly motivated state of mind as in case of the professional

photographer. High involvement and high motivation lead to a consumer behavior process which

is distinctly different from that of a low involvement and low motivation.

The consumer was motivated to buy a pack of MAGGI because his physiological need for a

quick and instant tasty food which required a very less amount of time for its preparation was

duly met. When it comes to purchasing the product in terms of taste, Maggi emerged as a high

involvement product and when it comes to purchasing the product in terms of Price, it emerged

as a low involvement product.

Attitudes

Attitudes are our learned predispositions towards objects, people and events. Attitudes guide our

orientation towards these. It is our attitudes which influence how we respond to different

products and services. Attitudes are not inborn or innate in us. Rather they are learnt from people

around us.

Our attitudes influence our purchase decisions and consumer behavior.

Our attitude towards saving has undergone radical changes. Instead of saving and leading a

simple, frugal life, people prefer to have a better lifestyle today rather than save for tomorrow.

Till a few years ago most housewives had a negative attitude towards frozen, dehydrated or

instant food like MAGGI. But today, with more women joining the work force, such products

are viewed as a convenience and instant, quick to cook meals, looked upon favorably. The

change in attitude of consumers has helped Maggi gain a market share of more than 50%.

Personality and Self-Concept

Personality is the sum total of the unique individual characteristics that make each one of us what

we are.

It provides a framework within which a consistent behavior can be developed. Self-concept or

Self-image is the way we perceive ourselves in a social framework. We always tend to buy only

those products and services which we think fit or match with our personality.

Marketers also try to give a distinct image or personality to their products which is as close as

possible to that of the target consumers.

MAGGI tried to impart a distinct image to its 2 – Minute Noodles by targeting consumers like

young adolescents and working women. It’s “Fast to Cook, Good to Eat” and “Health Bhi,

Taste Bhi” funda clicked the consumers and was widely accepted by masses.

Learning and Memory

Everyday we are exposed to a wide and diverse range of information. But we can barely recall a

small fraction of it the next day.

We only remember that which is of relevance and importance to us, or where we have a

motivation to remember.

Our motives, attitudes and personality act as filters by letting in only relevant information and

keeping all other information out. Surely we would see the product, hear its jingle on the radio

but chances are it will not register in our minds. We will remember it only for a short while and

then forget it.

This is known as selective retention. We retain in our memories only selective information.

MAGGI’s Mass Advertising has helped the company to position itself in such a manner that

even its tagline has become a part of our daily conversations. This has helped Maggi to enable

the consumers to memorize its product.   

Information Processing

This refers to the process and activities which consumers engage in while gathering, assimilating

and evaluating information. The manner in which we assimilate and evaluate this selective

information is determined by our motives, attitudes and personality and self-concept. Thus the

same information may be evaluated in a different manner by two different individuals and the

ensuing response may also be very different. A half-filled glass elicits the response “a half-empty

glass from, one consumer while another reacts by saying it is “half-full”

The information regarding the new variants like MAGGI Atta and Dal Noodles was processed

well by the consumers as they perceived it to be a healthy and nutritious variant. Maggi’s Rice

Mania is not as successful as its other variants since consumer’s perception for this product

varied marginally.

2 External Influences

Cultural Influences

The first of the influences is that of cultural variables.

Culture is defined as the complex, sum total of knowledge, belief, traditions, customs, art,

morals, law and any other habits acquired by people as members of a society. Culture of one

society differs from that of another. Many of our actions and behavior as consumers stem from

our cultural background.

MAGGI has now become an integral part of consumers preferring fast food. The societal culture

has now drastically changed. Women, who were earlier considered as homemakers only have

now stepped out of their homes and are engrossed with hectic schedules. They largely opt for

such alternatives that are less time consuming and even healthy for their family.

Sub-Cultural Influences

Within a given culture, there are many groups or segments of people with distinct customs,

tradition and behavior, which set them apart from other people. All Indians share one common

cultural heritage, but the Hindu Brahmins of Tamil Nadu are very different from the Hindu

Bengalis of Calcutta in the same way as Kashmiri Hindus are different from the Hindus of

Gujarat. Each of these people, within one cultural mainstream have uniquely distinct sub-

cultures. They have their style of dress, food habits, religious traditions and rites all of which

have implication for the marketer.

Considering the local tastes and preferences that form a part of the subculture, MAGGI

introduced its Rice Mania in Shahi Pulao for the North, Lemon Masala for the South and Chilli

Chao for the Eastern parts of the country.

Social Class Influences

Social class is a group consisting of a number of people who share more or less equal position in

a society. Within a social class people tend to share same values, beliefs, and exhibit similar

patterns of behavior and consumption. Some social classes are ranked as higher and lower.

Social classes differ from one society to another, and their standing in society may also change

over time. Social classes may be defined by parameters such as income and occupation. The

belongingness to a social class influence decisions such as choice of residence, type of holiday,

means of entertainment and leisure.

Considering the income and occupation of the urban society, MAGGI targeted the same and did

not pay much attention towards the weaker sections of the society. They tapped the potential of

the huge middle class consumers whose personal disposable income was high enough to resort to

all such products.

Social Group Influences

A social group is a collection of individuals who share some common attitudes and a sense of

relationship as a result of interaction with each other. Social groups may be primary, where face-

to-face interaction takes place frequently, such as families, work groups and study groups.

Secondary groups are those where the relationship is a more formalized and less personal in

nature. Examples of primary groups are associations of professional members of a political party,

and social groups such as Rotary, Lions etc. The behavior of individuals as consumer is greatly

influenced by other members of the group.

MAGGI promoted its products as one, for the social group like school goin children, teenagers

and working women.

Family Influences

Family is a social group which can be defined as a primary group. It needs to be studied in great

detail as it is one of the strongest sources of influences on consumer behavior.

The first and strongest influence on a child is that of his family and he imbibes many behavioral

patterns from other family members subconsciously and these tend to stay with him even after

attaining adulthood. Further, within a family many decisions are made jointly with various

members exerting different degree of influence. The changing structure of families as the joint

family system gradually gives way to single nuclear families also influence the consumer

behavior.

MAGGI’s advertisements have always portrayed it as a family meal wherein it shows the entire

family obsessed with Maggi for e.g. Maggi Mania. The advertisements also show the entire

family consuming Maggi as their major meal.

Advertisements:

1 Maggi Noodles:

The following concepts of consumer behavior are applied in the maggi ads:

Family: The ad targets a family scenario, usually focusing on the fact that the noodles are

generally liked by the children. It uses a joint family setting, wherein grandparents are

also shown in the family, thus the ad tries to target customers through all the ages. The ad

acknowledges the importance that children play in a household’s purchase decisions by

giving the central role of the advertisement to a child. Thus they have observed that the

children influence the parents to buy Maggi products.

Motivation: Some ads of Maggi focus on the fact that Maggi is easy to cook. It shows

that Maggi can be cooked in two minutes, and that it is good to prepare Maggi as a snack

to serve children. This advertisement motivates mothers to purchase Maggi noodles for

the ease of cooking them.Another advertisement featuring Maggi Atta noodles focuses on

the fact that it is healthier than regular instant noodles. Thus, it motivates the health

conscious people to purchase their product.

Culture: The maggi advertisements rely heavily on Indian culture, in the sense that it

always shows traditional family values in its advertisements.

For example, in a traditional Indian family, the mother always cooks for the family. This

has always been shown in the advertisements for maggi noodles.

Affiliation: Maggi portrays the need for affiliation in an advertisement in which a child

brings home his friends to play and his mother makes maggi noodles. In this

advertisement, the need for affiliation is played upon, in showing that friends can be won

over, or impressed with the preparation of maggi noodles.