CONSUMER BEHAVIOR

Assignment 1:
Benefits, Functions, Features,
POP & POD Of A Product

Submitted To:
Sir Sajjad Anwar

Submitted By:
Muizz Amjad
02113059 - C
Hot snacks, in particular instant noodles, have become a booming product
category in Pakistan, positioned as they are as the cheapest way for children
to consume calories in a healthy meal option.

In Pakistan, the category was created by Maggi (Nestl) when the brand
launched in 1992; Unilever then followed with Knorr in 1993. As a general
assumption there are only two major market players, Maggi & Knorr. Both the
major players have been active lately.

What does the customer seek in the product?

Benefit
Function
Feature

Brands:

Knorr
Maggi

Products:

Knorr Noodles
Maggi Noodles

Knorr Noodles:
Knorr launched Instant Noodles range in Pakistan in 1993. Knorr Noodles
have become the brand of choice for kids over the years. Exciting new

flavors, developed to suit the local taste palette, have been a major source of
gain, which has continued to make food No More Boring for the kids.
The noodles are available in different flavors:
Noodles Chicken
Noodles Chatpatta
Noodles Sizzler
Noodles Jalapeno
Noodles Lemon Chili
Noodles Chin Chow
Noodles Hot & Spicy
The noodles are available in 2 different SKUs:
Rs 15 (50g)
Rs 25 (75g)
The noodles are available in different types:
Noodles
Soupy Noodles
There is a continuous process of product line extension and product
improvement. Knorr has launched two new flavors (Chin Chow and Hot n
Spicy). In addition to these new flavors, Knorr has a premium product line
with a single variant called Soupy Noodles and a bestselling range with two
constant flavors: Chicken and Chatpatta. The recently introduced flavors are
tagged with a campaign captioned Boriyat Bhagao (chase boredom away)
Knorr has been running an English-language animated series called Knorr
Quest for the noodle pot to encourage healthy snacking since 2010. In
2012, this was changed to Knorr Noodle Gang Ke Adventures and while the
characters remain the same the series is in Urdu to appeal to kids in small
towns and rural areas. This along with the launch of smaller packs (50g, Rs
15 SKU) suggests that instant noodles will soon be more than a choice snack
for the urban child. Its advertising remains focused on its core target group,
(children between the ages of 6 to 12),
Feature of the product is that children get a snack ready within few minutes
that is good and tasty for them. Function of the product is that it is available
in different types, SKUs & flavors. And benefit of the product is to indulge
the children into healthy activities, may its making noodles snack for
themselves or enjoy the animated series and keep them away from
boredom.

Maggi Noodles:
In Pakistan, Nestl Pakistan Ltd. introduced the MAGGI brand by pioneering
the Instant Noodles category in 1992. Today, the portfolio consists of Instant
Noodles and Powder Seasoning.
The noodles are available in different flavors:
Chicken
Chatkhara
Masala
Lemon Chaska
Karara
Bar B Q
The noodles are available in 2 different SKUs:
Rs 18 (50g)
Rs 20 (66g)
Maggi Noodles have recently rebranded and repacked and are now called
Maggi Yumm Power. Focusing on nutrition, Maggi promises a product with
the right combination of iron, protein and carbohydrates. The size of the
noodle cake has been increased and the tastemaker has been enhanced.
Maggis pricing strategy gave it a huge boost in its market share which was
previously dwindling. Feature of the product is mainly its SKUs and pricing.
Although they have increased their price for SKU 50g From Rs15 to Rs18, but
still they are successful in it. Function of the product is to indulge children
and mother to have fun time in the kitchen. And benefit of the product is that
it has all those essentials that are important for a human body and especially
for a child for example iron, protein and carbohydrates. They can get the
good amount of their body requirements in a snack category.

Market Research & Share:

Knorr accounts for a 55% share of the market; Maggi is the second biggest
player with 40% and remaining 5% is shared by Shaan Shoop, Indomine
(Imported from Indonesia) and Cup Noodles (Imported from Malaysia). Yet
despite such growth, the market penetration of instant noodles remains low.
According to independent studies and researches, the penetration of instant noodles
(at approximately 60%) is still at a very nascent stage. Since then the category has
seen steady growth and is currently valued at over Rs 1.6 billion, with a volume size
of 7500 plus tons as per estimates from various sources. However, in Pakistan

the category has witnessed an unprecedented growth of 30-35% year on

year in the last 3-5 years. The reasons contributing to this growth range from
increased urbanization to changing lifestyles, peoples increasingly busy
lifestyles makes the two-minute preparation time extremely convenient.
Although children arent the only consumers, they make up the larger chunk,

instant noodles are less popular with adults who look for snacking options on
the go.

POP (Point Of Parity):

Both companies have 6 flavors but only one flavor similar.

Good from healthy, nutrition & taste point of view.

POD (Point Of Difference):

Flavors are of same generic of both brands but they have different
names.
Noodles Type (Normal & Soupy)
SKUs
Pricing & Packaging
Marketing & Positioning Strategies

Conclusion:

Although Maggi and Knorr offer similar products, their marketing

strategies diverge in their choice of audiences. Maggi is committed to
addressing mothers, while Knorr believes in talking directly to children.
Maggis advertising has been centered on the family. Its recent
initiative has been to introduce its Maggi Master which it seems to be
using to create a personality around its brand.
The Maggi Master offers tips, advice and even recipes on its Facebook
page. Knorr is with the strategy to directly aim children through
animated series & promotional campaigns at schools.
Maggi and Knorr all fall within the price range of Rs 15-25. However,
the category has seen some pricing wars. Earlier Maggi and Knorr were
available at a similar price. However, while inflation led Knorr to
increase the price of its 66g pack to Rs 20, Maggi decided to take a cut
in its product and re-launched with a 50g SKU at Rs 15 (later increased
to Rs 18). Maggis pricing strategy gave it a huge boost in its market
share which was previously dwindling. Despite the fact that consumer
perception is that Knorr is priced higher (it is not), the brand is sticking
to this pricing, although it has also recently launched a smaller trial
pack for Rs 15 aimed at penetrating the rural markets.
Both brands are trying to engage consumers in different ways. Maggi is
reaching out through door-to-door sampling and consumer valued
Maggi promotions, while Knorr has been running an English-language
animated series.
Both brands have huge opportunities in the rural market.
Both companies have quite different marketing strategies but Knorr
has better promotional & place strategies.

External References:

https://www.facebook.com/KnorrNoodles/info
https://www.facebook.com/MAGGIPAKISTAN/info
http://www.youtube.com/MaggiPakistan
http://aurora.dawn.com/2013/01/01/shooping-into-instant-noodles/
http://www.unilever.pk/our-brands/detail/Knorr/338048/
http://www.nestle.pk/brands/culinaryfood
http://aurora.dawn.com/2013/07/03/no-room-for-boriyat/