Maggi traning report (Akhil mankotia)

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A PROJECT REPORT
“CONSUMER BUYING BEHAVIOUR AND BRAND
LOYALTY TOWARDS NESTLE
MAGGI”
IN PARTIAL FULFILLMENT FOR THE DEGREE OF BECHALOROF
BUSINESS ADMINISTRATION
Guided By: Submitted By:
Mr. VIJAINDER JASWAL AKHIL MANKOTIA
(Faculty of BBA), MPGC Roll no. 3007
MAHARANA PRATAP POST GRADUATE GOVT.COLLEGE AMB
SESSION 2015-2018

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A PROJECT REPORT
“CONSUMER BUYING BEHAVIOUR AND BRAND
LOYALTY TOWARDS NESTLE
MAGGI”
IN PARTIAL FULFILLMENT FOR THE DEGREE OF BECHALOROF
BUSINESS ADMINISTRATION
Guided By: Submitted By:
Mr. VIJAINDER JASWAL AKHIL MANKOTIA
(Faculty of BBA), MPGC Roll no. 3007
MAHARANA PRATAP POST GRADUATE GOVT.COLLEGE AMB
SESSION 2015-2018

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DECLARATION
I, hereby declare that this Project Report titled “CONSUMER BUYING BEHAVIOUR AND
BRAND LOYALTY TOWARDS NESTLE MAGGI” submitted by me is a bonafide work
undertaken by me and has not been submitted to any other University or Institution for the award
of any degree diploma / certificate or published any time before.
Akhil mankotia
Roll. No 3007
Class: - BBA 6TH SEM

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ACKNOWLEDGEMENT
Survey is an excellent tool for learning and exploration. No classroom routine can substitute which is possible while
working in real situations. Application of theoretical knowledge to practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, it’s not easy to achieve anything. There is always a sense
of gratitude, which we express to others for the help and the needy services they render during the different phases of
our lives. I too would like to do it as I really wish to express my gratitude toward all those who have been helpful to
me directly or indirectly during the development of this project.
I would like to thank my Project Mentor Prof. Mr. VIJAINDER JASWAL who was always there to help and guide me
when I needed help. Their perceptive criticism kept me working to make this project more full proof. I am thankful to
them for their encouraging and valuable support. Working under them was an extremely knowledgeable and enriching
experience for me. I am very thankful to her for all the value addition and enhancement done to me.
No words can adequately express my overriding debt of gratitude to my parents whose support helps me in all the way.
Above all I shall thank my friends who constantly encouraged and blessed me so as to enable me to do this work
successfully.

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EXECUTIVE SUMMARY
The project aims at understanding the consumer's commitment to repurchase and stay loyal to the product that
keep consuming for long stretch of time. Research has demonstrated conclusively that it is far more costly to
win a new customer than it is to maintain an existing one. And there is no better way to retain a customer than to
exceed his expectations. For this purpose it is essential to know the level of customer satisfaction.
The focus of my research was the measurement of Brand loyalty towards Nestle Maggi after the recent ban that it
went through. There can be no better opportunity to interact with the external as well as the internal customers of
an organization. Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand
due to situational constraints, a lack of viable alternatives, or out of convenience. Such loyalty is referred to as
"spurious loyalty". True brand loyalty exists when customers have a high relative attitude toward the brand
which is then exhibited through repurchase behavior. This type of loyalty can be a great asset to the firm:
customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm.
For example, if Joe has brand loyalty to Company A he will purchase Company A's products even if Company
B's are cheaper and/or of a higher quality.
The Research findings focuses on understanding the buying behavior that consumer has towards maggi after the
recent ban in which the Maggi samples were tested at Kolkata's referral laboratory and the test results showed that
there are added monosodium glutamate and excess of lead. This lead to ban of maggi in several states of India.
However, Maggi has been launched and various marketing measures are taken by Nestle to regain its old Image
and gain the brand loyalty that it had earlier

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CONTENTS
1 INTRODUCTION 7
2 MAGGI -INDIA 12
3 MAGGI DURING BAN 14
4 BRAND LOYALITY 19
5 PRODUCT LIFE CYCLE 25
6 SWOT 27
7 THE STUDY OF OBJECTIVE 34
8 RESEARCH DESIGN 36
9 DATA ANALYSIS AND INTERPRETATION 40
10 SUMMARY OF FINDING, SUGGESTION AND CONCLUSION 51
11 QUESTIONNAIRE 55
12 BIBLOGRAPHY

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INTRODUCTION
NIL introduced the Maggi brand to Indian consumers when it launched Maggi 2 Minute
Noodles, an instant food product, in1982. At that time, Indian consumers were rather
conservative in their food habits, preferring to eat traditional Indian dishes rather than canned
or packaged food. In fact, NIL was trying to create an entirely new food category, instant
noodles, in India. Initially, the company targeted working women on the premise that Maggi
noodles were fast to cook and hence offered convenience.
However, this approach failed as was evident from the fact that the sales of Maggi noodles were
not picking up despite heavy media advertising. To get to the root of the problem, NIL
conducted a research, which revealed that it was children who liked the taste of Maggi
noodles and who were the largest consumers of the product. After this, NIL shifted its focus
from working women and targeted children and their mothers through its marketing. NIL's
promotions positioned the noodles as a 'convenience product', for mothers and as a 'fun'
productfor children. The noodles' tagline, 'Fastto Cook Good to Eat' was also in keeping with
this positioning.
NIL aggressively promoted Maggi noodles through several schemes like distributing free
samples, giving gifts on the return of empty packs, etc. NIL's advertising too played a great
role in communicating the benefits of the product to target consumers. Through its ads, NIL
positioned Maggi as a 'fun' food for kids which mothers could prepare easily. Taglines like
'Mummy, bhookh lagi hai' (Mom, I'm hungry), 'Bas 2-Minute,' (Only 2 minutes) and 'Fast to
Cook Good to Eat' effectively communicated the product's benefits to target consumers.
These ads had become so popular that the tagline 'Bas 2-Minute' immediately reminded Indian
consumers of Maggi noodles even several years after the ads were taken off the TV. Maggi's

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first product extension was Maggi instant soups launched in 1988. With the launch of Maggi
soups, NIL had become a pioneer in the organized packaged soup market in India.
Product Profile
Type: Noodles
Industry: Food
Founded: 1890
Headquarter: Cham, Switzerland
About Nestle
• Nestle is a multinational packaged food company founded and head quartered in Vevey, Switzerland
• It was set up in 1866
• NIL is the Indian Subsidiary of Nestle
Nestle Product Range
Candy and Chocolates Frozen Foods
Pet Food Specialty Items
Maggi Seasoning Maggi Taste ofAsia
Ice cream Baking

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Beverages Bottle ofwater
The Maggi brand originates from Switzerland where in 1863 Julius Maggi created the beginning of the
Maggi brand
• In 1947 Nestlé acquired the Maggi brand.
• The brand is popular in Australia, India, South Africa, Brazil, New Zealand, Brunei, Malaysia,
Singapore, Sri Lanka, Bangladesh, Fiji and the Philippines
• Maggi has launched different flavors in India: Maida, Atta, rice, multi grain, tomato, and chicken.
• Maggi noodles is recognized as a genre for instant noodles product category.
Maggi Product Extension
Maggi’s Mantras
Brand Element
an: me and meri Maggi.
Pre Requisite for Maggi

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Evaluation of Print Ads and TV Ads
Fast to cook, good to eat: focused on educating customers about nutritional value of
Maggi, convenient in cooking, healthy product.
Maggi 2 minute noodle: change in target market
Taste bhi, health bhi: Maida isn't consider good for health, hence they came with Atta
and rice variant.
Me and meri Maggi: emotional bondage with the customer. Earlier sharing Maggi
moments on the packet and now Big B narrates them on TV. (hostel, lakhan, rakhi’s
wedding)

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Twitter Page-
Youtube Page-

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MAGGI – INDIA:
Nestle India Limited is the market leader in Indian Noodle Market with it’s Maggi Brand of
Noodles which was pioneer brand launched in 1983 in the packaged food market of India. It
took the challenge and established Maggi in Indian market considered to be conservative and
typical about food consumption. It appropriate realization of target segment, effective
positioning and effective promotion and sales made Maggi to Noodles in India as Xerox it to
photocopier. NIL had introduced sauces, ketchups and soups under Maggi brand to reap benefit
of brand popularity and image and contribute to financial gains by 1990.Maggi also became
successful in sauces, ketchups and soups Market in India. Though NIL tried to extend to other
ready to eat products like pickles, cooking aids and paste, It was unsuccessful so dumped those
products. Maggi Brand of products sustained recession in 2000 and 2001 in India by
introducing economy packets.
To fulfill novelty needs of customers and revitalize Maggi Noodles Brand NIL made different
attempts by introducing new formulation to new taste but customers resisted change and Maggi
had to reintroduce Maggi Noodles in same taste. Maggi Noodle had till 2005 five product line
on noodles with four variant in Maggi 2 Minutes Noodle. In 2006 in compliance with NIL
target to be “health and Wellness Company” Maggi repositioned it as health and taste food
products. NIL has also introduced with taste and product line in Sauces and Soup Market under
Maggi to catch new segment, revitalize brand, compete with other producers and fulfill
expectation of customers.

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In 2005 Maggi brand worth was 3.7 billion from 1.7 billion market worth in 1.7 billion in
2003. Maggi Noodle is Market leader with around 80% market share in Noodles/Pasta and
Maggi Sauce is market leader with almost 37% of market share in 2005 in 1.8 billion market of
India. Knorr has taken over Maggi in Soup market recently.
In 2005 Maggi was the highest spender in the Promotion and Sales in the Indian Market in the
Noodles Category. Maggi is competing with Heinz Sauces and Ketchup, Knoor Soups, Kissin
Sauces and Ketchup, Top Ramen, Sunfeast PastaWai Wai and 2 PM in corresponding
categories of products and variants.
80%
20%
Market shareof
Maggi in noodles
market of India
Maggi
others
45%
55%
Market share of
Maggi in other ready
to eat product
market in India
Maggi
others

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MAGGI During the Ban: On June 5 this year, Nestle India's popular Maggi
noodles went off the shelves after the Food Safety and Standards Authority of India (FSSAI) imposed a ban,
calling it “unsafe and hazardous” for consumption. The ban was imposed after several laboratories found
the instant noodles contained huge quantities of taste enhancer monosodium glutamate (MSG) and lead,
way beyond the permissible limit. Maggi off the shelves: Stock worth nearly Rs 320 crore was recalled from
across the country by Nestle India after it was banned by FSSAI. Destroying the stock: After the ban was
imposed pan-India, Nestle India was ordered to not only take Maggi off the shelves, but to also destroy the
stock, which included 30,000 tonnes-worth of instant noodles. Ambuja Cements was paid Rs 20 crore by
Nestle India, to burn the entire stock at its cement plant in Chandrapur in Maharashtra. Fine: The Corporate
Affairs Ministry imposed a nearly-Rs 640 crore fine on Nestle India, in lieu of finding MSG and lead
beyond the permissible limit in Maggi noodles. The government filed a Rs 640-crore class action suit before
the consumer forum National Consumer Disputes Redressal Commission (NCDRC). Out of this Rs 284.45
crore was sought in basic damages, and another Rs 355.5 crore in punitive damages. However, the
government had said that the penalty could go higher as it was still calculating further damages to be
sought.

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MAGGI NOODLES TIMELINE OF EVENTS
9 November 2015
Noodles available for sale once again
4 November 2015
laboratories - mandated by the Bombay High Court – find samples of the newly manufactured MAGGI
Noodles to be safe for consumption, with lead content well within permissible limits.
16 October 2015
the Bombay High Court show MAGGI Noodles to be
safe, with lead content well within the permissible limits.
Noodles and submits the new batches for fresh tests to reconfirm they are safe for consumption.
13 August 2015
"arbitrary" and "that principles of natural justice were not followed."
s that Nestlé India can bring the product back to the market if fresh tests – conducted in three
accredited laboratories on the existing samples and subsequently on the freshly manufactured product– find the
product safe.
11 August 2015
onsumer Disputes Redressal Commission (NCDRC) files a class action lawsuit against
Nestlé India on behalf of Indian consumers.
practices, sale of defective goods and sale of goods to the public by selling MAGGI Oats Noodles without
product approval."

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30 June 2015
tinue exporting MAGGI Noodles.

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11 June 2015
Nestlé India files a legal petition with the Bombay High Court, seeking a judicial review of this order. As the case
progresses the company cites a number of arguments, including the following:
The FSSAI order was passed without giving Nestlé a proper hearing
The government laboratories that tested MAGGI Noodles for lead – on behalf of the FSSAI and some Indian state
FDAs (food and drug administration) - were not accredited for lead testing.
Tests by Nestlé and an independent accredited laboratory have found MAGGI Noodles safe to eat
Tests by food standards authorities in six countries – USA, Canada, UK, Australia, New Zealand and Singapore –
also found Indian-made MAGGI Noodles safe for consumption.
MAGGI oats Noodles was launched when the FSSAI 'Product Approval' system was under suspension.
While legal proceedings are ongoing, Nestlé continues to comply with the FSSAI order and destroys over 35,000
tonnes of the product.
5 June 2015
In light of growing consumer confusion, Nestlé India decides to temporarily stop selling MAGGI Noodles in
India until the situation with the authorities is resolved.
Later in the day, the Food Safety and Standards Authority of India (FSSAI) issues an order to Nestlé India which
includes, among others, the:
Recall of all nine variants of MAGGI Noodles from the market
Halt of commercial activities related to the product, including sale and production
Removal of the "No Added MSG" claim from product packs
Withdrawal / recall of MAGGI oats Noodles as it did not have 'Product Approval'
April 2015
The referral government laboratory in Kolkata says it has detected lead levels above permissible limits and the
presence of MSG in its sample of MAGGI Noodles.
Ensuing tests on MAGGI Noodles samples - representing 165 million packets - by both Nestlé India's own
accredited laboratories and independent accredited laboratories show lead levels to be within the limits set by the
Indian food safety authorities.

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Nestlé India states that although it does not add MSG to MAGGI Noodles, the product contains glutamate from
hydrolysed groundnut protein, onion powder and wheat flour, which can produce a positive result in a test for MSG.
Nestlé India says it will remove the "No added MSG" claim on the pack – although 'factually correct and not in
violation of regulations'.
January 2015
The second sample is received by the referral laboratory in January 2015.
It is analysed from January 2015 to April 2015 – significantly after the product's shelf-life.
March 2014
Authorities in the State of Uttar Pradesh inform Nestlé India that MSG was detected in a sample of MAGGI
Noodles that carried a "No added MSG" claim on the pack.
Nestlé India states it does not add MSG to MAGGI Noodles and requests a second sample to be sent to a referral
government laboratory in Kolkata.

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Brand loyalty
Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise
continue using the brand and can be demonstrated by repeated buying of a product or service
or other positive behaviors such as word of mouth advocacy. Brand loyalty is more than simple
repurchasing, however. Customers may repurchase a brand due to situational constraints, a lack
of viable alternatives, or out of convenience. Such loyalty is referred to as "spurious loyalty".
True brand loyalty exists when customers have a high relative attitude toward the brand which
is then exhibited through repurchase behavior. This type of loyalty can be a great asset to the
firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new
customers to the firm. For example, if Joe has brand loyalty to Company A he will purchase
Company A's products even if Company B's are cheaper and/or of a higher quality. An
example of a major brand loyalty program that extended for several years and spread
worldwide is Pepsi Stuff. Perhaps the most significant contemporary example of brand loyalty
is the dedication that many Mac users show to the Apple company and its products. From the
point of view of many marketers, loyalty to the brand - in terms of consumer usage - is a key
factor:
Loyalty
A second dimension, however, is whether the customer is committed to the brand. Philip
Kotler, again, defines four patterns of behaviour:
1. Hardcore Loyals - who buy the brand all the time.
2. Softcore Loyals - loyal to two or three brands.
3. Shifting Loyalty - moving from one brand to another.
4. Switchers - with no loyalty (possibly 'deal-prone', constantly looking for bargains or 'vanity
prone', looking for something different).

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METHODS TO FIND BRAND LOYALTY: COLOMBO MORRISON
MODEL:
Colombo and Morrison distinguished buyers in to two groups. Hard-core loyals, who buy the
same brand with absolute certainty at every single purchase occasion. Potential switchers,
who choose at every purchase occasionally one of the brands according to a certain probability
distribution. Therefore, the two important parameters of the model reflect a brand’s reliance on
highly loyal customers and its success in attracting brand switchers. The first groups are those
who have a positive attitude toward the brand (prefer it) and who buy it. The second groups are
those who buy it on a given purchase but who may prefer another brand. An assumption of the
model is that every consumer has a preferred brand. If these consumers have a preference, why
are they “switching?”
Although all consumers have a preferred brand, some preferences are stronger than others.
Weak preferences characterize potential switchers. Potential switchers may be variety seekers;
or, they may be responding to sales promotions or other situational factors. By considering the
relative preferences and purchases, the model computes an ability of each brand to attract
consumers from each other brand.
Share Tier Model: This model takes into account two parameters Price & Quality. This
model takes in to account two parameters Price & Quality. It tests the belief and checks
whether the beliefs are getting translated into Behavior, i.e. actual purchase. It also helps to
find out the price level of price sensitivity that a particular brand has. This model also helps in
gauging the resilience and leveragability of the brand. Rational for choosing Colombo
Morrison Model: The category noodles we have chosen falls under low level of involvement

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that means people’s chance of trying other brand is high. Analyzing Colombo Morrison
Model gives the reasons why people choose other brand over preferred brand. This model
helps to find out the problems existing in the brand.
PRICE PREMIA: It is the ability of the brand to charge the premium
METHODS TO FIND PRICE PREMIUM: Brand Price Trade off Method: BPTO is
one of the simplest to find relative value of the brand compared to competitors. In this method
different brands are shown to customers and they are asked to choose their preferred brand at
the same comparable price level. Then prices of the products are revised and then the
customers are asked to choose from the adjusted price level. The ranking of the preferred can
be inferred in relation to the prices customers can pay or willing to pay.
Van Westerndrops Price Sensitivity Meter:: The method was developed in the 1970s by
Dutch economist Peter H. Van Westendorp. The Price Sensitivity Meter (PSM) is a market
technique for determining consumer price preferences.
The traditional PSM approach asks four price-related questions, which are then evaluated as a
series of four cumulative distributions.
what price would you consider the product to be so expensive that you would not
consider buying it? (Too expensive)
quality couldn’t be very good? (Too cheap)

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t what price would you consider the product starting to get expensive, so that it is not out
of the question, but you would have to give some thought to buying it? (Expensive/High Side)
—a great buy for the money?
(Cheap/Good Value)
Changes Made to Van westendorps price sensitivity Meter: As per the method the
questionnaire should be open ended. Open ended questions in this method works well when
the level of involvement for the product is high. Since, the category we have
chosen fall under low level of involvement, Closed end questionnaire gives better results.
Rational for choosing Van westendorps price sensitivity Meter: This method
gives clear about how consumers perception about a product changes with the change in price
of the product.
Rational for not choosing Brand Price Trade-off Method: This method gives
relative value of a brand compared to its competitors. Since, Maggi has a market share of
around 90% and the rest of the brands sharing 10% market share, adopting this method makes
results skewed towards Maggi. In order get better results using this method we have take more
sample size for competitors.
DISTRIBUTION: The main advantage of Maggi over other brands is early mover
advantage & distribution network. Only few noodles brands like Maggi, Yuppie & Knorr has

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good distribution network. But Yuppie & Knorr are still in the early growth stage. Wai-Wai is
present only in Eastern region & Top Ramen has entered tie-up with Marico to tap other
markets. Clearly Maggi has the advantage over other brands in terms of availability.
PRODUCT LIFE CYCLE: Product life cycle is a tool that provides a way to trace the
stages of product’s acceptance from introduction to decline. The market share of Maggi
noodles is around 90%. The present market size of instant noodles is Rs 1300 crore and is
expected to grow around Rs 3000 – 3500 crore by 2015. But, increased competition from Sun
feast Yuppie, HUL’s Knorr & other brands make hard for Maggi to increase its market share.

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PRODUCT LIFE CYCLE (MAGGI NOODLES)
What is the brand name that comes to your mind when we talk about noodles? Most of us
would say Maggi. Maggi is a brand of instant noodles, ketchup, sauces etc that originally
came into existence in the year 1872 in Switzerland and was founded by Nestle. This brand
is extremely popular in Australia, New Zealand, India and many other places.
INTRODUCTORY STAGE:
Nestle launched Maggi in India in the year 1982 with it’s 2 minutes instant noodles. When
Nestle launched this product there were a lot of ups and downs, with high failure rates.
Maggi, then had no competition and incurred high production cost. A lot of research was
also done in this stage which caused frequent modifications.
Growth Stage:
Around 1985, the demand for Maggi had increased tremendously in India. The entire
development cost was recovered and moreover it’s sale rates had also increased. In 1990 the
demand for Maggi had dropped a little because of an introduction of a new brand named Top
Ramen. So in order to increase it’s sales Nestle formulated a new flavour which wasn’t well
accepted by it’s consumers. Thus in 1999, Nestle re-launched the old flavour of Maggi,
which in turn increased it’s sales.
Maturity Stage:

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- During the period of 90’s MAGGI faces the tough competition
from TOP RAMEN.
PRODUCT: MAGGI introduced wide variety of products like Dal atta noodles, chicken maggi, maggi
cuppa mania.
PRICE: Maggi still comes in very affordable prices starting from Rs. 5,they reduced the quantity
instead of increasing price.
DISTRIBUTION: Distribution become more intensive. Various intensive programs for encouraging
products over other competitors.
Declining Stage:
As we all know that Maggi is now banned in India due to it’s high lead content. Thus it is going through it’s
declining stage now. Nestle is conducting a lot of research and if they come up with something new and
better, then Maggi might be selling it’s products in the future, or else after the declining stage, this brand
would become history in India.
To overcome its declining stage, Nestle has come up with one of the largest recalls in the history of Nestlé,
and in the rest of the food industry. Recalling 27,420 tonnes of MAGGI Noodles. Around 400 million
packets of MAGGI Noodles are being destroyed

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SWOT ANALYSIS
Strength:
Urban market
foods
and Development Division in India
Weakness:
Opportunities:
and canned food market in India by 15% annually.
Threats:
Indian, Top Ramen in Noodle and Knorr Soups.
s in the Market
segment for product category

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Consumer Decision Making Process: Maggi
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 facet of consumer
behaviour 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:
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 analysing 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.
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.

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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.
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.

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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.
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
er
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.
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

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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 Actions

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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.
Maggi managed to cater efficiently to the Indian market,since Indians are very conservative and
concerned as to where the spend their money,Nestle adopted the marketing and promotional strategies
which best suited the Indian Market.

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OBJECTIVE
The main objectives for undertaking this project are:
 To study that purchase ready to eat product available in the
market.
 To study those are you a consumer of maggi?
 To study that if yes, which maggi product is noodles category do
you regularly buy?
 Find out how long you have been buying noodle.
 Find out According to you which age group prefers maggi most?
 To know that what is the frequency (by family) of its consumption
in your routine?
 To study that your comment on price of maggi product?
 To study that How do you perceive maggi product?
 Find out which advertisement of maggi influenced you to
purchase maggi after its ban?
 To study that Do you think fame of the nestle company has come
down after maggi ban?

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NEED FOR THE STUDY
1. The customers were interested to find out the best ready to cook products in the present market.
2. The company was interested to know the current market trends of the instant foods.
3. The customers were interested to know about the health hazards and dangerous ingredients of the
instant foods.
STATEMENTOF THE PROBLEM
The Indian fast food industry was a growing industry until the ban of Maggi noodles. This is a descriptive study
about the impact of Maggi banning in Indian ready to cook food products. India’s market for processed,
packaged, and branded foods is a nascent one where consumers are largely unaware of the ingredients, addictives
and other attributes of what they buy and eat., even though they decide the future of each product. So I took 150
customers as sample.
The ready to cook market is wider market in India. Maggi was the major market share holder in Indian ready to
eat food market with their noodles and other instant foods. Maggi noodles account for 20% of Nestle Company’s
overall revenue. Large numbers of players are there. So it is difficult to reach millions of customers and large
number of players. Maggi problem has made certain confusions in the market about the genuineness of these
products. So I am trying to make a brief study on the effect of Maggi ban on other ready to cook products and its
remedial solutions.
OBJECTIVES OF THE STUDY
1. To find out the impact of magi banning on similar food products.
2. To find out the demand variances of ready to cook food products after maggi issue
3. To understand the behavioral change of customers towards fast-food
4. To determine the knowledge base of consumers about the fast-food culture
SCOPE OF THE STUDY
1. The present study will aim at studying, the influence of maggi banning on other
ready to eat foods.
2. The study helpsthe companyto prepare a definite brand positioning and market penetration policies.
3. The study helps the company to find out present customer attitudes.
4. The study helps to get an idea about the latest market share of each company.
5. The study helpscompanytomeetthe customerqueriesdoubtsbyintroducingpropercustomerrelation
techniques.

38
LIMITATIONS OF THE STUDY
Throughadequate care has beentakenwhile doingthe project.Thisprojectstill suffers fromcertain
limitations.Theyare;
1. It is a wider topic. It may have different dimensions. However, it is possible that there will be
other factors, which might not have been covered in this study.
2. Some respondents did not properly respond to the questionnaire.
3. The results and conclusions of the project cannot be generalized in all area of an organization.
4. There was shortage of time and resources for the functioning of operation.
METHODOLOGY OF THE STUDY
Two techniqueswere usedforcollectingdata,namely;
 Primary data collection technique
 Secondary data collection technique
PRIMARY DATA
Primarydata are collectedafreshandfor the firsttime.Itisthe data originatedbythe researcherspecificallyto
addressthe researchproblem.Inthisstudy,the primarydataare collectedfromthe general publicregarding
theirviewstowardsreadytocookproducts throughquestionnaire.
SECONDARY DATA
Thiswill include datacollectionfromvariouswebsites,books,Companybrochures,magazines,articlesasa
supportto primary.
OPERATIONAL DEFINITIONS OF THETREMS USED
MSG – Monosodiumglutamate isthe sodiumsaltof glutamicacid,one of the most abundantnaturally –
occurringnon-essential aminoacids.MSGisfoundintomatoes,parmesancheese,potatoes,mushrooms,and
othervegetablesandfruits.
LEAD – Leadis presentinsmall amountsthroughoutthe environmentdue toitsnatural occurrence andits
release intothe environmentbyhumanactivities.Exposure of large amountof leadwhetherfromfoodorany
othersource,can affectnumerousbodysystemsincludingthe central nervoussystemthe kidneysandthe
immune system.

39
FSSAI – The FoodSafetyandStandardsAuthorityof Indiaisan agencyof the Ministryof Healthand Family
Welfare,Governmentof India.The FSSAIis responsibleforprotectingandpromotingpublichealththroughthe
regulationandsupervisionof foodsafety.

40
DATA ANALYSIS AND
INTERPRETATION

41
DATA ANALYSIS AND INTERPRETATION
1. Do you purchase ready to eat product available in the market.
PARTICULARS FREQUENCY PERCENTAGE
YES 30 100%
NO 0 0%
DATA INTERPRETATION:-
From the above table it can show that 100% of the respondent prefer ready
to eat product available in the market.
100%
0%
Column1
YES
NO

42
2. Are you a consumer of maggi?
YES 25 95%
NO 5 5%
As per the study it is clear that 95% of the respondents are consumers of
maggi and rest 5% do not prefer maggi.
95%
5%
Column1
YES
NO

43
3. If yes, which maggi product is noodles category do you regularly buy?
MAGGI MASALA 23 93%
MAGGI VEG. ATTA
NOODLE
2 2%
MAGGI CUPPA
MANIA
3 3%
OTHER 2 2%
From the above pie chart, it can be conclude that 93% of the respondent
regularly buy maggi masala noodle, 2% of their respondent buy maggi veg
Atta noodle, 3% buy maggi cuppa mania and 1% buy other.
93%
2% 3% 2%
Sales
MAGGI MASALA
MAGGI VEG. ATTA NOODLE
MAGGI CUPPA MANIA
OTHER

44
4. How long have you been buying noodle.
PARTICULARS FREQUENCY PERCENTAGES
FROM CHILDHOOD 23 93%
SCINCE 10 YEARS 3 3%
SCINCE 5 YEARS 2 2%
SCINCE 2 YEARS 2 2%
As per the questionnaire circulated it is seen that 93% of the
respondent are buying maggi noodle from their childhood and rest of them
are buying since 10 years, 5 years and 2 years respectively.
93%
3%
2%2%
Column1
from childhood
10 years
5 years
2years

45
5. According to you which age group prefers maggi most?
4-12 19 89%
13-26 7 7%
27-40 3 3%
41-ABOVE 1 1%
From the study that it can concluded that 4year-12years age prefer maggi
most.
89%
7%
3%
1%
Column1
4Y-12Y
13Y-26Y
27Y-40Y
40Y-ABOVE

46
6. What is the frequency (by family) of its consumption in your routine?
ONCE A DAY 1 1%
TWICE A WEEK 3 3%
ONCE IN TWO DAYS 1 1%
ONCE IN 2 OR 4 DAYS 1 1%
ONCE A WEEK 2 2%
OCCASIONALLY 22 92%
According to the current survey, the frequency of buying maggi noodle has
come down i.e. 92% respondent maggi noodle occasionally and rest buy
noodle once a day. 2% there respondent buy once in a week and so on.
Column1
once
twice
once a two days
once a week
once in 2 or 4 days
occasionally

47
7. Your comment on price of maggi product?
AFFIDABLE 27 97%
HIGH 1 1%
LOW 2 2%
As per study that 97% respondent are satisfied price of maggi product.
1%people feel high price .2% fell price is low.
97%
1%2%
Column1
affordable
high
low

48
8. How do you perceive maggi product?
GOOD FOR HEALTH 6 6%
READY TO EAT 17 87%
JUNK FOOD 2 2%
TASTLY/ FUN EATING 5 5%
AS PER ABOVE DATA THAT IT CAN SHOW 87% RESPONDANT PERCEIVE
MAGGI PRODUCT AS READY TO EAT PRODUCT.
6%
87%
2%
5%
Column1
good for health
ready to eat
junk food
tasty/ fun eating

49
9. Which advertisement of maggi influenced you to purchase maggi after
its ban?
WELCOME BACK
MAGGI
3 3%
KHUSIYON KI RECIPE
MOM,S MAGGI
19 88%
I MISS YOU MAGGI 2 2%
MERI MAGGI 7 7%
As per data 88% respondent get advertisement khusiyon Ki mom’s maggi
purchase. 7% respondent by mari maggi and so on.
3%
88%
2%
7%
Column1
Welcome back maggi
mom's maggi
I miss you maggi'
meri maggi

50
10. Do you think fame of the nestle company has come down after
maggi ban?
YES 25 95%
NO 5 5%
We can say that 95% of the respondent think that fame of the nestle
company has come.
95%
5%
Column1
YES
NO

51
SUMMARY OF FINDINGS,
CONCLUSION & SUGGESTIONS

52
FINDINGS
 It has beenfound thatmajorityof the respondentsare usersof anykindof ready to cook food products.
Out of 150 samples 102 respondents are users.
 It has been found that majority of the users comes between 15- 30 age limits.
 Majority of the respondents are either salaried employees or students.
 It has been observed that majority of the respondents using it because of its easy in preparation.
 Children in the family mostly preferring noodles and other ready to eat food products.
 Majority of the respondents are not aware about the quality of these products.
 It has been noticed that majority of the respondents are not aware about the health hazards of these
products and even they don’t know what is MSG LEAD and other ingredients of the products.
 It has been found that only minority respondents substituted the products after Maggi’s issue, out of
those minority respondents around 60% choosed SUNFEAST YIPEE.
 It has beennoticedthatmajorityhave the opinion that advertisement and brand ambassadors have an
influence on their buying decision.
 It has been found that majority of the respondents are now in fear to recommend noodles for their
friend and relatives.
 Majority of the respondents have the opinion that the Maggi issue has an impact on Nestle’s products
and in the whole ready to cook food products.
 It has been found that majority of the respondents denying the reacceptance of Maggi.

53
CONCLUSION
Traditionally Indiansbelieveinconsumingfreshstuff ratherthanpackagedorfrozen,butthe trendhas changed
Indiabecame a topmarket forfast foodcompanies.There are variouscompanieslikeNestle,Sunfeast,Horlicks,
Ching’s,MaruchanRamencompetingeachother inIndianmarket.
Maggi isa productthat belongstoNestle India,whichisone of the leadingfastfoodcompaniesinthe country.
But fewmonthsbackgovernmentof IndiabannedMaggi Noodlesbecausetheyare usingmonosodium
glutamate (MSG) and leadbeyondthe permissible limitintheirproduct.ThisMaggi issue hasmade a negative
impacton whole Indianreadytocookproductsmarket.The sale of the total industrydeclinedby60%to
70%.The total industrynowundera radar view because the customersandotherauthoritiesdoubtfully
watchingthese products.Inorderto overcome these problemsthe studyinsistedthatthe companiesshould
come out withnewadvertisementtechniques,promotional campaignsandespeciallycustomerawareness
programmes.

54
4.3 SUGGESTIONSAND RECOMMENDATION
 I am suggesting that the company should form a separate Quality Administration Committee in each
production unit to ensure the quality of every product.
 The company should strengthen the social net working system of the company and customer relationship.
 The companies should open its own various outlets throughout the country with customer information
centers.
 Maggi should introduce an alternative snack in the ready to cook market which will help the relaunching
of Maggi in a new format.
 Should launch new advertisement campaigns (TV,RADIO,etc...) with credible stars.
 Should strengthen the distribution channels of the company especially in rural areas.
 Conduct Promotional campaigns at schools, colleges, and towns where people are more than 1000.
 The customers should check the ingredients and other relevant information before purchasing a product.

56
QUESTIONNAIRE
PERSONAL DETAILS
Name :
Occupation :
Age :
Education Qualification :
GENERAL DETAILS

58
BIBLIOGRAPHY
BOOKS REFFERED
 LA STRATEGIE NESTLE (NESTLE STRATEGY), HELMUT MAUCHER.
 FAST FOOD: ROADSIDE RESTAURANTS IN THE AUTOMOBILE AGE,JAKLE,JOHN (1999).
 DEVELOPMENT OF A MEASURE OF THE MOTIVES,UNDERLYINGTHE SELECTION OF
FOOD: THE FOOD CHOICE QUESTIONNAIRE,APPETITE,ANDREW STEPTOE& TESSA M.
POLLARD,(1995),
JOURNAL
 THE WALLSTREET JOURNAL.
 BRITISH FOOD JOURNAL
 JOURNAL OF FOOD PRODUCTS MARKETING
WEBSITES
 WWW.INSTANTNOODLES.ORG
 WWW.WIKIPEDIA.COM
 WWW.NESLTE.IN

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