Based on our qualitative analysis we found that instant noodles are preferred due to its ease of availability, a good alternative to ordering food out and preparing regular food at home and because it can be prepared quickly. Maggi, though having the highest recall among our respondents, was popular due to its brand image and availability. This is not very good for Maggi. Given newer brands that have a strong brand image and made easily available, consumers won’t mind switching.
We did some quantitative analysis as well. We found that over eighty percent of our correspondents prefer instant noodles and the awareness of the instant noodles is very high among the age group of 15 to 35. A bi-variate analysis showed that people have started to show dissatisfaction to the usual flavours like masala and chicken. A regression analysis confirmed that Maggi is preferred due to ease of preparation and availability whereas preference for other brands is increasing due to the variety of flavours offered them being healthy.
Other tools like Jaccard analysis, Stochastic analysis and SWOT analysis also had similar findings. Following are our observations and recommendations based on quantitative analysis:
- The brand loyalty among the consumers of Maggi is very low and there is a high chance of them shifting to a competitor’s product.
- We can see that the primary drivers for Maggi are availability and brand image but that for competition is variety of flavours offered and them being healthy.
- Maggi is widely available hence it sells more but as the supply of competitor product increases the share of Maggi is likely to fall.
- Maggi is not considered healthy and the shift of the younger generation towards health foods does not augur well for it.
- The stochastic share of Maggi is 55% confirming that Maggi has the highest mind share.
- Maggi can regain its lost market share by emphasizing on:
- Launching a variety of flavours which has already been done to some part
- Positioning Maggi as a healthy snack
Well, the competition is only going to get more intense. Maggi should focus on its strengths and try to overcome its weaknesses if it has to retain its market share.