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ACADEMICIA Volume 2, Issue 1 (January, 2012) ISSN 2249-7137

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Publ i shed by: South Asi an Academi c Research Journal s
ACADEMICIA:
A n I n t e r n a t i o n a l
M u l t i d i s c i p l i n a r y
R e s e a r c h J o u r n a l
CONSUMER BEHAVIOUR AND BRAND PREFERENCE OF NESTLE
MAGGI NOODLES – AN EMPIRICAL STUDY WITH REFERENCE TO
TRICHY, TAMIL NADU

DR.S.GANESAN*, R.RAJANBABU**, T.MALLIKA***
*Assistant Professor, **Research Scholar, ***Research Scholar
Department of Economics,
Bharathidasan University, Tiruchirappalli - 620023, Tamil Nadu, India.

ABSTRACT

Consumer behaviour refers to the behaviour that consumers display in searching for
purchasing, using, evaluating and disposing of products and services that they
expect, will satisfy their need. Consumers are highly complex individuals subject to a
variety of psychological and sociological needs apart from their survival needs.
Needs and priorities of different consumer segments differ drastically. This study
analyses the brand preference of Nestle maggi noodles by consumers. The study
evaluates the quality of nestle maggi noodles availed by consumers, the media
influences in consumption, the effect of the pricing policy in customer satisfaction.
This study attempts to measure customer satisfaction as well as contributing to the
commercial efficiency by the way of suggestions to improve its profitability in a long
term business.
______________________________________________________________________________

INTRODUCTION

Quick food styles are catching up fast because of more number of working couples, domestic
fuel crisis, non-availability of reliable domestic servants and breaking up of joint family system.
Neither time nor patience to prepare the ingredients and wholesome food in the house itself, the
high price of ingredients and ready mix are also a significant factor responsible for the
spectacular increase in the demand for maggi noodles products.
BACKGROUND

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Nestle India Limited (NIL) introduced the maggi brand to Indian consumers when it
launched maggi “2 minute noodles”, an instant food product in 1982. 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 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' product for children.
The noodles’ tagline, “Fast to 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.
MAGGI NOODLES IN INDIAN MARKET
It is a far cry from the initial launch days when maggi was distributed free in schools to
promote trial; in 1980s during the launch period. The company made an attempt in the mid-90s
to change the formulation of the product, which was outright rejected by the consumers and the
company had to go back to it old formulation and the company had to do a massive
communication campaign. Today India is the largest market for maggi noodles. But the brand
has turned profitable just recently, so it has been a long haul for the company in the Indian
market. The journey and success of maggi noodles is something worth noticing for a marketer, as
one can learn a lot, the ignored reality that brand building is a long term business.
NEED FOR THE STUDY
The term consumer behaviour refers to the behaviour that consumers display in searching
for purchasing, using, evaluating and disposing of products and services that they expect, will
satisfy their need. Consumers are highly complex individuals subject to a variety of
psychological and sociological needs apart from their survival needs. Needs and priorities of
different consumer segments differ drastically. In this competitive era, a large number of noodles
brands are available to consumers and the study examines how they prefer to buy from the
quantum.
OBJECTIVES OF THE STUDY
1. To study the brand preference of nestle maggi noodles by consumers.
2. To evaluate the quality of nestle maggi noodles availed by consumers.
3. To analyse out the media influences in consumption.
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4. To evaluate the effect of the pricing policy in customer satisfaction.
5. To identify the reasons for purchasing various brands by consumers.
HYPOTHESES
1. There is no significant relationship between the impact of media and purchase decision.
2. There is no significant relationship between influencers and purchase decision.
3. There is no significant relationship between preference for more new varieties and
purchase decision.
4. There is no significant relationship between quality of noodles and purchase decision.
METHODOLOGY
The study is based on primary data. The data were collected through interview method by
using a structured questionnaire. For the purpose of the study the data have been collected in
different places of the market especially in retail shops. One hundred and twenty five nestle
maggi noodles customers were randomly selected for the study as sample. Necessary data have
also been collected from sources like books, magazines and internet. Chi-square test has been
applied for testing the hypotheses.
PREFERENCES IN NESTLES MAGGI NOODLES
TABLE-1
CONSUMER PREFERENCES IN NESTLE MAGGI NOODLES
Brands No. of Respondents Percentage
Maggi vegetable multigrain noodles 35 28
Maggai 2- minute noodles 40 32
Maggi vegetable atta noodles 20 16
Maggai cuppa mania 30 24
Total 125 100

The Table-1 reveals that 28 percent of the respondents prefer maggi vegetable multigrain
noodles, 32 percent of the respondents prefer maggi 2- minute noodles, 16 percent of the
respondents prefer maggi vegetable atta noodles and 24 percent of the respondents prefer maggi
cuppa mania noodles.
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DIGRAM-1
CONSUMER PREFERENCES IN NESTLE MAGGI NOODLES


CONSUMPTION OF ALL BRANDS
TABLE-2
CONSUMPTION OF ALL BRANDS
Response No. of Respondents Percentage
Yes 106 85
No 19 15
Total 125 100

The Table-2 envisages that most of the respondents (85 percent) have tasted all brands of
maggi noodles in nestle and 15 percent of the respondents have not tasted all brands of maggi
noodles in nestle.
REASONS FOR PURCHASE
Consumer Preferences in Nestle Maggi Noodles
Maggi vegetable multigrain
noodles
Maggai 2- minute noodles
Maggi vegetable atta noodles
Maggai cuppa mania
Total
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Out of the 125 respondents, 66 respondents (53 percent) are purchasing the maggi
noodles for quality, the same level of respondents (24) maintained to purchase this particular
noodle for reasons of its low price and availability. The few respondents are consuming the
maggi noodles for brand image (7 percent) and for other reasons (2 percent).
TABLE -3
REASONS FOR PURCHASE OF NESTLE MAGGI NOODLES
Response No. of Respondents Percentage
Brand image 9 7
Quality 66 53
Low price 24 19
Availability 24 19
Others 2 2
Total 125 100

DIGRAM-2
REASONS FOR PURCHASE OF NESTLE MAGGI NOODLES
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FREQUENCY OF PURCHASE
TABLE-4
FREQUENCY OF PURCHASE
Frequency No. of Respondents Percentage
Daily 4 3
Weekly 46 37
Whenever needed 75 60
Total 125 100

The details of frequency of purchase of nestle maggi noodles is presented in Table-4. It is
evident from the analysis that the majority of respondents (60 percent) are purchasing the maggi
noodles whenever needed.
INFLUENCES OF MEDIA IN PURCHASE DECISION
TABLE-5
0
10
20
30
40
50
60
Brand image Quality Low price Availability Others
Reasons for Purchase of Nestle Maggi Noodles
Percentage
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INFLUENCES OF MEDIA IN PURCHASE DECISION
Media No. of Respondents Percentage
Television 109 87
News paper 3 2
Magazines 9 7
Wall advertisement 4 3
Total 125 100
Degrees of Freedom = 6 Table value at 5% level = 12.59
Calculated value of χ² = 15.36
It is evident from Table-5 that for huge of the respondents i.e., 87 percent of the
respondents (109) came to know about the product through television, 7 percent of the
respondents (9) came to know the product through magazines and merely 3 percent and 2 percent
of the respondents came to know about the product through the wall advertisements and the
newspaper respectively.
Since the calculated value of Chi-square is higher than the table value the null hypothesis
is rejected and it is concluded that there is a significant relationship between media and purchase
decision.
DIGRAM-3
INFLUENCES OF MEDIA IN PURCHASE DECISION
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INFLUENCERS OF PURCHASE DECISION
TABLE-6
INFLUENCERS OF PURCHASE DECISION
Influencers No. of Respondents Percentage
Parents 13 10
Children 84 67
Friends 25 20
Neighbours 3 2
Total 125 100
Degrees of Freedom = 6 Table value at 5% level = 12.59
Calculated value of χ² = 5.10
It is observed from the Tables-6 that 10 percent of the respondents (13) are influenced by
parents to make purchase decision, 67 percent of the respondents (84) are influenced by children
to purchase, 20 percent of the respondents (25) are influenced by friends and only 2 percent of
the respondents (3) are influenced by neighbours. The foremost of the respondents are influenced
by children to purchase because the advertising strategies focused on young children.
87%
2%
7%
3%
Percentage
Television
News paper
Magazines
Wall advertisement
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The formulated hypothesis is accepted, since the calculated value of Chi-square is less
than the table value. Hence it is confirmed that there is no significant relationship between the
influencers and purchase decision.
DIAGRAM-4
INFLUENCERS OF PURCHASE DECISION

PREFERENCES FOR MORE NEW VARIETIES
TABLE -7
RESPONDENTS PREFERENCES FOR MORE NEW VARIETIES
Response No. of Respondents Percentage
Yes 80 64
0
10
20
30
40
50
60
70
Parents Children Friends Neighbours
Influencers of Purchase Decision
Percentage
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No 45 36
Total 125 100
Degrees of Freedom = 2 Table value at 5% level = 5.99
Calculated value of χ² = 0.17
As per the above table, majority (64 percent) of the respondents (80) were expecting new
varieties and 36 percent of the respondents (45) did not need new varieties i.e., they were
satisfied from the existing product line of maggi noodles. Maggai 2- minute noodles and maggi
vegetable atta noodles are new product innovation according to the need of customers.
The result of the Chi-square test proves that there is no significant relationship between
the preferences for more new varieties and purchase decision.
NEEDS CHANGES IN PRESENT BRANDS
TABLE-8
OPINION OF THE RESPONDENTS NEEDS CHANGES IN PRESENT BRANDS
Needs Changes No. of Respondents Percentage
Prices 15 12
Quantity 48 38
Taste 28 22
Shape 34 27
Total 125 100

According to Table-8, a majority of the respondents i.e. 38 percent of the respondents
(48) expect change in quantity, 27 percent of the respondents (34) want changes in shape, 22
percent of the respondents (28) need changes in taste and 12 percent of the respondents (15)
require changes in price.
ABOUT THE ADVERTISEMENT
TABLE-9
OPINION OF RESPONDENTS ABOUT THE ADVERTISEMENT
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Alternatives No. of Respondents Percentage
Very good 42 34
Good 62 50
Average 13 10
Not effective 8 6
Total 125 100

It is clear from Table-9 that for vast majority (84 percent) of the respondents (104) are
having positive opinioned that the advertisements of the company, while 10 percent of the
respondents (13) feel that advertisements are at an average level. Only 6 percent of the
respondents (8) have shown the negative response regarding the advertisement.
ABOUT PRICES
TABLE-10
OPINION OF THE RESPONDENTS ABOUT PRICES
Alternatives No. of Respondents Percentage
Cheep 55 44
Moderate 32 26
High 34 27
Very high 4 3
Total 125 100

It is obvious from Table-10, majority (44 percent) of the respondents (55) feel that prices
are cheap, while 30 percent of the respondents (38) expressed that prices of nestle maggi noodles
are high.
DIAGRAM-5
OPINION OF THE RESPONDENTS ABOUT PRICES
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ABOUT QUALITY
The Table-11 indicates that 30 percent of the respondents (37) are highly satisfied with
the quality of nestle maggi noodles. Nearly 50 percent of the respondents (61) are moderately
satisfied with the quality of nestle maggi noodles and 21 percent of respondents (27) are lowly
satisfied with the quality of nestle maggi noodles. Among the highly satisfied group; majority
(57 percent) of the respondents are highly satisfied with the quality of maggai 2- minute noodles.
40 percent of the respondents lowly satisfied with the quality of maggai vegetable atta noodles
for the reason that not purely vegetarian and the price is little more than the regular noodles.
Since the calculated value of the Chi-square test is higher than the table value, the
hypothesis is rejected. Hence it is inferred that there is a significant relationship between quality
and purchase decision.


TABLE-11
OPINION OF THE RESPONDENTS ABOUT QUALITY
Brand
Opinion on Quality
Highly
%
Moderately
%
Lowly
% Total %
0
5
10
15
20
25
30
35
40
45
50
Cheep Moderate High Very high
Opinion of the Respondents about Prices
Percentage
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Satisfied Satisfied Satisfied
Maggai vegetable
multigrain noodles
1 3 26 74 8 23 35 100
Maggai 2- minute
noodles
23 57 14 35 3 8 40 100
Maggai vegetable
atta noodles
4 20 8 40 8 40 20 100
Maggai cuppa mania 9 30 13 43 8 27 30 100
Total 37 30 61 49 27 21 125 100
Degrees of Freedom = 6 Table value at 5% level = 12.59
Calculated value of χ² = 33.52
DIAGRAM-6
OPINION OF THE RESPONDENTS ABOUT QUALITY

ABOUT PACKAGING
Table-12 envisages that most (68 percent) of the respondents (85) consider its attractive,
16 percent of the respondents (20) have the opinion that packaging is highly attractive, 10
percent of the respondents (13) opined indifferent. Only 6 percent of the respondents (7) have the
opinion that packaging is unattractive.
0
10
20
30
40
50
60
70
80
Highly
Satisfied (%)
Moderately
Satisfied (%)
Lowly
Satisfied (%)
Opinion on Quality
Maggai vegetable multigrain
noodles
Maggai 2- minute noodles
Maggai vegetable atta noodles
Maggai cuppa mania
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TABLE -12
OPINION OF THE RESPONDENTS ABOUT PACKAGING
Alternatives No. of Respondents Percentage
Highly attractive 20 16
Attractive 85 68
Not attractive 7 6
Indifferent 13 10
Total 125 100

DIAGRAM-7
OPINION OF THE RESPONDENTS ABOUT PACKAGING

AWARENESS ABOUT INGREDIENTS
TABLE-13
AWARENESS ABOUT INGREDIENTS
0
10
20
30
40
50
60
70
Highly attractive Attractive Not attractive Indifferent
Opinion of the Respondents about Packaging
Percentage
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Aware No. of Respondents Percentage
Yes 75 60
No 50 40
Total 125 100

Table-13 reveals that a maximum (60 percent) of the respondents (75) are awareness on
contents/ ingredients and remaining 40 percent of the respondents (50) are not awareness on
contents/ingredients of nestle maggi noodles.
AWARENESS ABOUT EXPIRY DATE
TABLE–14
AWARENESS ABOUT EXPIRY DATE
Aware No. of Respondents Percentage
Yes 105 84
No 20 16
Total 125 100

It is clear from Table-14 that for enormous majority (84 percent) of the respondents (105)
have awareness on expiry date and rest of the respondents (16 percent) have not awareness about
expiry date. It is evident that the consumers are giving importance to item health aspect.




ABOUT SIDE EFFECTS
TABLE–15
OBSERVED ANY SIDE EFFECTS ON YOUR HEALTH
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Observe No. of Respondents Percentage
Yes 12 10
No 113 90
Total 125 100

From Table-15, it can be observed that 90 percent of the respondents (113) have not
observed any single side effects by using nestle maggi noodles and only 10 percent of the
respondents (12) have observed side effects. It is identified from the analysis that the NIC is
providing good food items and they are taking care of consumers’ health.
FINDINGS
1. 32 percent of the respondents prefer maggi 2- minute noodles.
2. Vast majority (85 percent) of the respondents have tasted all brands of nestle maggi
noodles.
3. 72 percent of the respondents purchase nestle maggi noodles for its quality with low
price.
4. 60 percent of the respondents purchase nestle maggi noodles whenever needed.
5. Television advertisements are a major factor in purchase decision compared to other
Medias.
6. The foremost influencer in purchase decision of the respondents is children.
7. 60 percent of the respondents were expecting new varieties of maggi noodles from
nestle.
8. 38 percent of the respondents wanted a change in the quantity of present brands. The
respondents want small quantity packets.
9. 50 percent of the respondents feel that the advertisements are good.
10. 44 percent of the respondents feel that prices are cheap.
11. 49 percent of the respondents are moderately satisfied with the quality of nestle maggi
noodles.
12. Majority (68 percent) of the respondents consider that the packing is attractive.
13. Higher percentage (60) of the respondents is awareness on contents/ ingredients.
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14. Enormous majority (84 percent) of the respondents are awareness on expiry date of this
product.
15. 90 percent of the respondents have not observed any side effects by using nestle maggi
noodles
SUGGESTIONS
The following are the suggestions made on the finding of the analysis and information’s
are collected from respondents.
1. Some of the respondents felt that manufacture may improve the quality of maggi noodles.
2. Some of the respondents suggested that the product may be better taster by adding rich
flavuor.
3. Some of the respondents feel not to add chemicals.
4. Most of the respondents are expecting introduced some new varieties in maggi noodles.
5. Introduction of new product line by utilizing the existing brand image may help to satisfy
the expectations of new variety seekers.
6. Introduction of new variety of tastes in maggai 2- minute noodles would be profitable
because that particular brand has a stable market demand, which may be attracting new
consumers without damaging the existing potential.
7. Conducting various competitions among children particularly in rural areas because rural
areas are an untapped potential.
8. Young children play the part of the major in purchase decision of maggi noodles. For
attracting those advertisements may be focused on the want, needs and pleasure of
children.
9. Manufacture should focus on distribution channels and use of the distribution channel to
expand its market to rural India with products targeted to the market. It is the way it could
increase its volume of sales.
10. Manufacture should launch health awareness campaign to educate consumers about the
benefits of health food. It could sponsors health camps, publish health information.
11. To enlarge its domain, manufacture should enlarge its product segment. It would spread
economies of scale to customers in the form of price.
CONCLUSION
In the modern world, consumer taste and preferences are changing day-by-day because of
rapid changing technology in the food production. A satisfied consumer will soon change to
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other product but a loyal consumer will not. The success of manufacturing depends on creation
of new customers and retaining the existing customers. Several factors are influencing the
customers while they purchase a particular product. Hence manufactures should identify the
target group and provide products to satisfy all types of consumers. The firm has to be constant
innovative and understand the consumers needs and desires.
Maggi though has been able to differentiate itself from other noodles; maggi being taken
as generic to noodles is hampering other extended product category. Competitors have high
grounds to capture the market differentiating then from being maggi. It makes others possible
product category vulnerable if lunched under maggi. As Indian market is brand conscious, other
competitors are coming up with more Indianized brand of products, and as Indian being more
aware of their culture and large segment being typical and conservative about their culture, there
are more chances that manufacture would be successful if it creates a brand close to Indian
culture in wording to positioning. As India is growing, old Indian brands are also regaining
momentum worldwide; manufacture could catch the trend of market.
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