The document discusses the impact of the 2015 Maggi noodles controversy in India on Nestle brand. Maggi noodles were found to contain excessive lead and MSG beyond permissible limits in India, leading to a ban. The project examines through a consumer survey how this affected perceptions of and purchasing behaviors toward other Nestle products. It found the controversy negatively impacted Maggi and KitKat most, reduced brand loyalty, and consumer trust in Nestle quality. The company needs to rebuild its image and convince customers of its product quality to regain market share.

1. By
Pranav R Pai
Bcom(Taxation)
Chinmaya Vidyapeet
Ernakulam
Under the guidance of
Ms. N Sangeetha

2. Maggi is an international brand of seasonings, instant soups and
noodles owned by Nestle since 1947. The original company was
founded in Switzerland in 1872 by Julius Maggi.
In India and Maggi instant noodles were very popular; "Maggi" is
synonymous with instant noodles and had a 90% share in India.
In May 2015, Food Safety Regulators from Uttar Pradesh, India
found that Maggi 2 Minute Noodles had up to 17 times the
permissible limit of lead in addition to monosodium glutamate in
it. In June 2015, it was reported in India that tests had found high
amounts of lead and MSG in Maggi noodles, and FSSAI ordered
country-wide withdrawal and recall for all 9 variants of Maggi
Instant Noodles and Oats Masala Noodles. Thereafter multiple
state authorities in India found an unacceptable amount of lead
and it has been banned in more than 5 other states in India
suggesting them unsafe and hazardous for human consumption.

3.  This project is relevant because this sheds light on the
volume and type of impact that one product can make on
other products of the same brand. In this case the study is
conducted on the impact of maggi’s ban by the Govt.of India
on the brand Nestle which is the parent company of Maggi

4. PRIMARY OBJECTIVES
 Impact of maggi fiasco on other nestle
products
SECONDARY OBJECTIVES
 Prospective consumer loss
 Effect on sales of nestle products

5.  Primary data collection
customer survey
50 respondents
 Secondary data collection
Web, Magazines, text books, media

6. 40
20
16
0
10
20
30
40
50
below 18 18-25 26-35 36-45 above 45
72
28
0
20
40
60
80
Male Female
100
0
0
50
100
150
Yes No
1. AGE 2. GENDER
3. Awareness about Maggi controversy

7. 4. Purchasing Nestle products before the
controversy .
6. If NO, why?
5. If Yes, why?
Yes
No
20%
36%
25%
8% 11%
Brand
loyalty
Brand
quality
Brand
publicity
Promotion
al activity
Brand loyalty,
33.33
Brand quality, 66.67
Brand publicity, 0
Promotional activity,
0
Pricing, 33.33

8. 7. Purchase of Nesle
products after the the
controversy 8. If yes, why?
9. If No, why?
Yes, 80
No, 20
26%
26%
15%
14%
19%
Brand loyalty Brand quality Brand publicity
Promotional activity Pricing
Brand loyalty,
28.57
Brand quality,
57.14
Brand publicity,
28.57
Promotional
activity, 14.29
Pricing,
14.29

9. 10. Nesle products purchased
before the controversy
11. Nesle products purchased after the
controversy
12. Loyalty to brand Nesle
Maggi, 63
Lactogen,
0Nescafe,
40
Kitkat, 48
Milkmaid,
52
Maggi, 39.13
Lactogen, 0
Nescafe,
39.13
Kitkat, 56.52
Milkmaid,
14.29
Yes, 50No, 50

10. Yes, 44
No, 56
Yes
20%
No
80%
Yes
84%
No
16%
14. Influence of family and friends in
purchase decision before controversy
15. Influence of family and friends in
purchase decision after controversy
16. Are you satisfied with the
quality of Nestle products

11. Yes
64%
No
36%
Yes
88%
No
12%
17. Will you consume maggi if
it clears all the test
18. Do you have positive attitude
towards Nestle products in the present
scenario

12. The company need to convince the customer that their
brand quality is still great.
From the survey we observe that the negative impact of
the controversy has mainly fallen on maggi and kitkat.
So the company should put more effort in making a
positive attitude among consumer for these 2 products.
It is suggested that company should strengthen its
brand image because more than one third of the
respondents do not purchase on the basis of brand
name.

13.  Brand loyalty is a cushion up on which the company
can fall back . since the brand the company should try
to build more customer who are loyal to the brand.
 Many customer have lost faith in the company after
the controversy because they do not try to influence
their friends or family to purchase Nestle products. So
the company should try to reduce their trust deficit at
the earliest.

14. Nestle is an MNC which is a major player in the FMCG
particularly in the food processing industry. This project
focus on the negative publicity of Maggi on nestle. We
can see that the Maggi controversy has negatively
affected the nestle which has raised many doubts about
the brand quality of nestle
It is observed that the negative impact of controversy
has mainly affected Maggi and KitKat. It has also led to
considerable depletion of the brand value of Nestle.
The existing consumer base has shrunk a little which
will also affect the inflow of prospective consumers
because existing consumer can influence the purchase
decision of perspective customer, and because of this
factor the sales of nestle products have taken a back seat
after the controversy.