PROJECT REPORT

ON

“CONSUMER BUYING BEHAVIOUR AND BRAND LOYALTY TOWARDS NESTLE

MAGGI”

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

OF

PUNJAB TECHNICAL UNIVERSITY, JALANDAR

By

RUHI SANDHU

1503572

MBA IV SEMESTER

UNDER THE SUPERVISION OF

Dr. UDAY KHANNA

(ASSOCIATE PROFESSOR)

Chandigarh Business School of Administration, Landran, Mohali

(2015-2017)
 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.

RUHI SANDHU
 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. Uday Khanna who was always
there to help and guide me when I needed help. His perceptive criticism kept me
working to make this project full proof. I am thankful to him for his encouraging
and valuable support. Working under him was an extremely knowledgeable and
enriching experience for me. I am very thankful to him for all the value addition
and enhancement done to me.

RUHI SANDHU
 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 costlier 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
behaviour. 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 behaviour 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 re-launched and
various marketing measures are taken by Nestle to regain its old Image and
gain the brand loyalty that it had earlier.
 TABLE OF CONTENTS

1. Introduction

2. Maggi: India

3. Maggi: Timeline of Events

4. Maggi During the Ban

5. Product Life Cycle

6. Pricing & Product Development

7. STPD Analysis

8. SWOT Analysis

9. Consumer Decision Making Process

10. Literature Review

11. Research Methodology

12. Limitations

13. Data Interpretation and Analysis

14. Findings & Suggestions

15. Conclusions

16. References

17. Questionnaire
 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'
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.

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 2Minute,' (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 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 of Asia

Ice cream Baking

Beverages Bottle of water

• 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 Ketchup

• Maggi Bhuna Masala

• Soups: Soups and Instant Noodles

• 2 Minutes Noodles: Masala, Chicken, Rice, Atta, Multigrain

Maggi’s Mantras

• Promise of Quality, health and nutrition, easy to cook and tasty.

Brand Element

• Slogan: me and meri Maggi.

• Jingle: http://www.youtube.com/watch?v=5ZIDu9J3oz8

• Packaging: Yellow and Red pack

• URL: http://www.maggi.in/

Pre Requisite for Maggi

• Transferability: Maggi ketchup, Maggi soup, Maggi bhuna masala

• Adaptability: packaging has been changed over the period of time

• Memorable: 2 minute noodles

• Meaningful: name “Maggi noodles” can be easily related to the instant

noodles product category
• Likeability: most favorite snack, whole family snack

• Protected: ® sign could be found on the packets of Maggi noodles

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)

Facebook Page-
Twitter Page-

Youtube Page-
 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 fulfil 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.

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
Pasta Wai Wai and 2 PM in corresponding categories of products and variants.

History of Maggi in India

Maggi is produced at seven locations in India. Corporate decisions are taken at head
Office, Gurgaon and branch offices are located at major cities of India –Delhi, Mumbai,
Chennai, and Kolkata. Distributed production location helps in well-coordinated supply
chain for easy availability across pan India.

Macro Environmental Analysis

Macro environmental analysis of Maggi noodles done using PESTLE and Porter’s five
forces of industrial tools. The PESTLE analysis identifies several forces, which have
an influence on industry dynamics. Of these forces, perhaps the most prominent are
social forces, which relate to differences in consumer behavior. As an international

•Changing regulation surrounding food standards and marketing actions national and International.
POLITCAL •Government stability in new emerging economies – question of risk as part of the internationalisation
process.

•Awareness and knowledge of changing inflation, economic growth rates and income levels.
ECONOMIC
•Rising price of raw material goods in relation to the need to source from sustainable suppliers

•Changing consumer attitudes – move towards healthier food products

SOCIAL
•Understanding of consumer behaviour is crucial to ensuring a personal approach to marketing.

•Rise of social media, consumers interacting with firms and being able to do so across a range of platforms.
TECHNOLOGICAL
•E-commerce as a platform for development

•Changing nature of regulation.

LEGAL
•Need to adhere to global regulations and changes across different international markets.

•Increased attention directed towards corporate social responsibility

ENVIRONMENTAL
•Environmental concerns from consumers including concerns over packaging/recycling
 firm, Nestlé must be able to ensure a level of adaptation, which is appropriate to
different markets driven by different cultures and consumer preferences

Porter’s Five Forces of Industrial Analysis

Porter's Five Forces tool is used to understand both the strength of Maggi noodle’s
competitive position, and the threats of substitution, new entrants, bargaining power
of buyer’s, suppliers.

Competitive Threat of
Supplier’s Power New Entrants Buyer’s Power
Rivalry Substitutes

Raw materials Yipee (ITC), Top

required are Online Ramen (Nissin), Expectation of
marketing, Patanjali products like User for higher
Wheat Flour, mobile Apps Noodles, Knor
Sugar, Salt, Mix PASTA, SOUP, availaibility and
evolving. soupy noodles CAKES which of different pack
spices, (HUL)
Vegetable Oil many customers size
Vegetables are now
preferring due
Market Share of to increased
maggie dropped health & taste
Low cost in from 77.07 % in consciousness Price sensitivity
entry & exit Jan 2015 to 42 & is low.Buyer's
Since these in Jan 2016 are brand loyal
materials are and restrain
readily available from switching
with a plenty of Switching cost is because of price
suppliers, the zero and wide
bargaining range os
power of Maggi substitutes
is much higher.

50000 44400
Supplier
Demands in million
40000
concentration packets(Bags/cups)
and availibilty is
high. 30000

20000
13430
10000 5500 5340 5000 4280

From world consumption of Noodles it can be 0

ascertained that China and Indonesia are leading

in this regards. Despite huge population of India
(6 to 30 age->65 %, which is equal to 80 Cr- Source-Ministry of Human
resource/Statistic) the consumption of noodles is not up to the world leaders. This
indicates a huge potential for noodles market in India looking into the growing per-
capita income of people and more & more of urbanization.
 Demands in India in million
packets(bags/cups)
6000 5340
4980
5000 4360
4000 3530
2940
3000
2000
1000
0
2010 2011 2012 2013 2014

Source: Estimation by World Instant Noodles Association

(WINA)

India’s growing consumption of noodles highlight 81 % rise from 2010 to 2014 as per
world Instant Noodles Association (WINA). Considering the macroeconomic factors of
India, there is a huge opportunity for noodles market. Industry can capture the market
with changing target customer and re-positioning accordingly.

Micro Environmental Analysis

Market Demographics
Demographics:
a) Region: urban, semi-urban, rural (recent)

b) Occupation: Housewives, working professionals, self-employed

c) Sex: Male, Female

d) Income: ₹ 120000 p.a. upwards

e) Social class: Middle and upwards

f) Family life cycle: Young, single, forced bachelor and married with children.

Behavioural:

a) Occasions: Regular, Everyday user-urban, rural-depends on the temporal

aspects of the consumer’s life(varied usage in terms of time of time of day,
week, month, year)

b) User status: first time user-rural, potential users-semi-urban, heavy users-

urban
 c) Usage rate: Heavy user-urban, light-rural, medium-semi-urban

d) Loyalty status: hard core and loyal

e) Buyer-Readiness Stage: rural-some are aware, semi-urban: some intend to

buy(aware, informed),urban: informed(some desire, some intend to buy)

f) Attitude toward product: Enthusiastic, positive

Psychographics:
a) Lifestyle: Hard pressed for time

Top competitors

Data Source: Taken from official websites of individual products.

 Competitors Price Quantity

Maggi 12 70gms

Top ramen 10 75gms

Yippee 12 70gms

Patanjali Aata 15 70gms

Knorr soupy 15 70gms

Top Ramen Sunfeast Yippee Knoor Soupy Patanjali Atta Noodles

•launched in 2010 •launched in 2010 •launched in Nov 2015

•launched in 1991
•Distributors: ITC ltd •Distributors:Hindusta •Distributors:Patanjali
•Distributors: Indo
•Variety: Classic n Unilever Limited Ayruved FMGC
Nissin Foods Pvt Ltd
Masala, Magic Masala •Variety: Masala •Variety: Atta Noodles
•Variety: Macho and Chinese Masala
Masala, Funky noodles with spicy •USP: Made from
•USP: sourcing and and slurpy soup whole
Chicken, Oye Tomato,
blending expertise •USP: Taste & beautiful wheat flour (atta),
Curry Smoodles
that has made combination Soup distintive from others
•USP: 'Don't be a Aashirvaad India's No
noodle, be a Smoodle' & Noodles noodles
1 branded Atta has
Ad been leveraged to
create a delightful
noodle block.

Price

Price of Noodles mini-pack available in market is given in the table. The price of Maggi
as well as competitors are approximately same. So no differentiation is available in
pricing. Price of the product is almost kept constant by decreasing the quantity down
the years. Previously 100 grams pack were placed in the market. With increasing in
raw materials cost the quantity

dropped keeping price constant.

 Price of product in the Indian market. Data
Source: Taken from physical survey at Delhi.

Maggi Factory
Distribution Network
Factory warehouse
MNestle has 7 factories across India. From these factories, Maggi are
directly shipped to CFAs(carry & forward Agencies) located in each state. Agent
CFAs provided the warehousing facilities that are required for distribution
across the state. The presence of CFAs in each state ensures that the Distributors
taxes, octroi and other state level charges applied are lower.
Wholesalers
The next entity in the channel is the distributor.There are two major types
of distribution Direct Retailers
 Distribution Targeting Traditional trade
 Distribution Targeting mordern trade End Consumers

Distribution focused on taraditional trade deals with

 Wholesalers for reaching areas with spares demand
 Retailers in areas of high demand
Wholesalers distribute Maggi products to smaller stockiest and retailers.

Retailer stores are segmented based on their per week order. There are four board
categories.

 Super ‘A’- Super High Volume retailers

 ‘A’- High Volume retailers
 ‘B’- Medium Volume retailers
 ‘C’- Low Volume retailers
Each distributor covers close to 400-500 retail stores. The product is shipped from the
distributor to the wholesaler or retailer as per the order taken by distributor sales men.
There is a one day delay between taking an order and distibuting the product.
Morder trade involves retail store chains eg: Big Bazar, Reliance Fresh, etc. They are
serviced through specially designed distributors. The number of distributors supplying
goods to these major retailser is smaller than that of traditional trade.

Market Segmentation and Positioning of Maggi

Segmentation Targeting Positioning Differentiation

• Age • Kids • Fast to cook • Taste

• Eating Habits • Youth • Good to eat • Flavours
• Lifestyle of • Office Goers • 2-minutes • Packaging
urban families • Working noodles
Women • Taste bhi
• Health Health Bhi
Concious
People

MAGGI NOODLES TIMELINE OF EVENTS

9 November 2015

Now that the orders of the Bombay High Court have been complied with,
Nestlé India has made MAGGI Noodles available for sale once again

4 November 2015

All three NABL (National Accreditation Board for Testing and Calibration
Laboratories) accredited 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

• Test results from all three laboratories mandated by the Bombay High
Court show MAGGI Noodles to be safe, with lead content well within
the permissible limits.
• In compliance with the orders of the Bombay High Court, Nestlé India
commences manufacturing MAGGI Noodles and submits the new
batches for fresh tests to reconfirm they are safe for consumption.
13 August 2015

• The Bombay High Court overturns the government's ban on MAGGI

Noodles, arguing that the move was "arbitrary" and "that principles of
natural justice were not followed."
• The court rules 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

• The National Consumer Disputes Redressal Commission (NCDRC)

files a class action lawsuit against Nestlé India on behalf of Indian
consumers.
• It asks for close to USD 100 million (INR Rs 639.95 crore) in damages
on grounds of "unfair trade practices, sale of defective goods and sale
of goods to the public by selling MAGGI Oats Noodles without product
approval."

30 June 2015

The Bombay High Court allows Nestlé India to continue exporting

MAGGI Noodles.

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.
• 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.
 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.

Market share/ share price

Nestle India's nine variants of Maggi noodles accounts for nearly 70% of the
instant noodles market, which took a massive hit when a blanket ban was
imposed on the product.

After the ban was imposed on June 5, the company's share price tanked. On
June 8, three days after the pan-India ban was imposed, Nestle India's share
price was down to Rs 5,539.8, the lowest level it had seen all year.
Since then, the company's scrip has seen major volatility, regaining the highest
level since the ban at Rs 6,831.95 per share on August 5. On the date, Goa
deputy chief minister Francis D'Souza had said that he favoured the re-think on
the Maggi ban after the latest tests conducted by a central government
laboratory in Karnataka found the instant noodles safe for consumption.

Madhuri Dixit tweets on Maggi Ban and so did many other celebrities and loyal
Maggie customers-

However, the ban was set aside, Nestle India has started production at three
of the eight factories, and wants to start production at all the factories soon.
"We have resumed manufacturing of Maggi Noodles at three of our plants, at
Nanjangud (Karnataka), Moga (Punjab) and Bicholim (Goa)," said a Nestle
India Spokesperson.
Jobs

Nestle India employs nearly 7,200 prople in India, across its eight plants.
However, according to this NDTV report, Nestle India had assured that it will
not be cutting any jobs despite the production halt of one of its biggest brands.
The report said that employees and factory workers were reassigned to other
job roles during the ban.

However, according to this Indian Express report, the company's Moga plant
that employed 1,000 contract workers apart from the regular staff, had only
about 200 people during the ban.

Advertising

With the ban now kept aside and Maggi cleared for production, Nestle India is
gearing to relaunch the instant noodles. For this, the company has said that it
will be advertising aggressively, increased its spending on tv commericals.
During the ban, Nestle India had come up with a series of advertisements to the
theme #WeMissYoutoo

Currently Maggi is advertising the theme #NothinglikeMaggi to gain the lost

customer and create the popularity of its main product MAGGI noodles

#Maggilicious2016 was done during the new year time and it helped nestle gain its
old customers and create a positive image in the market.

Apart from this many heart touching commercial ad has come up which shows a
strong influence and comeback of maggi and also to gain the past Image the
company is adopting various measures to get back the Image that it once had.
 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 behaviours 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
behaviour. 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).

DISTRIBUTION: The main advantage of Maggi over other brands is early

mover advantage & distribution network. Only few noodles brands like Maggi,
Yuppie & Knorr has 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 Sunfeast Yuppie, HUL’s
Knorr & other brands make hard for Maggi to increase its market share.

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 its 2 minutes’ instant
noodles. When Nestle launched this product there were a lot of difficulties, 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, to increase its sales, nestle
formulated a new flavour which wasn’t well accepted by its consumers. Thus in
1999, Nestle re-launched the old flavour of Maggi, which in turn increased its
sales.

Maturity Stage:

• During its maturity stage, Maggi’s sales were at peak,

• production costs were low

• Declining sales growth.

• Saturated market.

• Extending product line.

• Large promotional offers.

• Entrance of new players - 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 its high lead content.
Thus, it is going through its 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 its 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.
 Pricing and Product Development

It was at this point in time that Nestlé decided to change the formulation of
Maggi noodles. The purpose was not only to infuse 'fresh life' into the brand,
but also to save money through this new formulation. The company used new
noodle-processing technology, so that it could air-dry instead of oil-fry the
noodles. The tastemaker's manufacturing process was also altered. As a
result of the above initiatives, costs reportedly came down by 12-14%. To
cook the new product, consumers had to add two cups of water instead of
one-and-a-half cups. The taste of the noodles was significantly different from
what it used to be. The customer backlash that followed the launch of the new
noodles took Nestlé by surprise. With volumes declining and customer
complaints increasing, the company began to work on plans to relaunch 'old
Maggi' to win back customers. In addition, in 1998, Nestlé began working out
a strategy to regain Maggi's position in the soup segment. To counter the
Knorr threat, the company relaunched Maggi soups under the 'Maggi Rich'
brand in May 1998. The soups were not only thicker in consistency than those
produced earlier, the pricing was also kept competitive and the packaging was
made much more attractive. However, Knorr took Nestlé by surprise by
launching one-serving soup sachets priced as low as Rs 4. HLL too launched
two-serving sachets of Kissan soup priced at Rs 7. As Maggi did not have any
offerings in this price-range, it lost a huge portion of its market share to Knorr.

The relaunch prompted market observers to compare Nestlé's move with US

soft drinks major Coca-Cola's 'New Coke' fiasco. However, the company
disagreed, "It's a hard-5 nosed strategy, that mixes nostalgia with the
consumer's voiced preference for the product it has been bred and rought up
on. The reintroduction is Nestlé's acknowledgement of the loyalty of the Indian
mother and the child to the original product." By May 1999, Nestlé's decision
to bring back the 'old Maggi' seemed to have paid off. Two months after the
relaunch, the monthly average sales of Maggi noodles n the northern region
rose 50% in comparison to the previous year. In July 1999, 'Maggi' the brand,
was promoted as the biggest brand in Nestlé's portfolio of brands in India,
overtaking brands such as Nestum and Cerelac. Nestlé believed that Maggi
had immense potential as it was a very 'flexible' brand under which regional
variants could be introduced to meet various market needs. Company sources
claimed that with reasonable price points and innovative products, Maggi
could emerge as a top brand and a major growth driver for the company. To
further support the brand, Nestlé carried out various promotional activities as
well. These included the August 1999 'Fun-Dooz' campaign and Jungle
Jackpot campaigns. 6 As a result of the above initiatives, Nestlé claimed to
have cornered an 81% market share of the 20,000 tonnes noodles market by
the end of 1999. Nestlé sources claimed that Maggi noodles outsold the
competition four times over and that more than four Maggi noodle cakes were
consumed every second in the country.
 STPD ANALYSIS OF MAGGI BRAND

Segmentation: Market Segmentation divides the heterogenous market into

homogenous groups of customers who share a similar set of needs/wants and
could be satisfied by specific products. Maggi Brand have segmented the
market based on lifestyle and habits of URBAN FAMILIES.

Target: Market Targeting refers to evaluating and deciding from amongst the
various alternatives, the company can best satisfy which segment. The Maggi
Brand have mainly targeted the Kids, Youth, Office Goers & Working Woman
which falls into the category of "convenience-savvy time misers" who would
like to get something instant and be over with it quickly.

Positioning: Market Positioning is the act of designing the company's offerings

and image to occupy a distinctive place in the minds of the target market. The
goal of positioning is to locate the brand in the minds of consumers to maximise
the potential benefit to the firm. Maggi has positioned itself in the SNACKS
category and not in the meal category since Indians do not consider noodles as
a proper food item. Therefore, Maggi have developed its brand image of instant
food products with positioning statements such as "2 minutes noodles" and
"Easy to cook, good to eat".

Differentiations: Points-of-difference (PODs) are attributes or benefits

consumers strongly associate with a brand, positively evaluate, and believe
they could not find to the same extent with a competitive brand. The Maggi
Brand have also differentiated its brand image from its competitors in terms of
taste, flavours and packaging. Maggi have launched wide varieties of products
in different flavours which can attract larger set of customers. Maggi products
are also available in different sizes catering to different customer needs.
 SWOT ANALYSIS

Consumer Decision Making Process: Maggi

Consumer Decision Making Process, this basic psychological process plays an

important role in understanding how consumers 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.
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. Awareness set is

 Maggi

 Tom Ramen
 Wai Wai

 Cup of Noodles

So out of the above awareness set the consumers decides to choose Maggi
because after analysing 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

 Brand

 Dealer

 Quantity

 Timing

 Payment Method

In some cases, consumer, may decide not to formerly evaluate each 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 favourable things about other
brands and will be alert to information that supports his/her decision. Marketer
must monitor
 Post Purchase Satisfaction

 Post Purchase Action

 Post Purchase Product Uses

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

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.
 REVIEW OF LITERATURE

Jain, A (2016) this research is done to study the impact of Nestle Maggi ban
on the consumers and on the newly launched noodles by Patanjali as an
entrant in instant food market in India. This research paper focuses on
analysing the growth of Patanjali Atta noodles and to study the perception of
consumers for these noodles after the massive Maggi ban in 2015. This paper
also takes into consideration ‘Make in India’ campaign in food processing
industry which explains the launch of swadeshi noodles in India.

Maniyal Nitin J (2015), after Maggi Noodles was banned across the country
and Nestle India Ltd withdrew stocks, it gave us an opportunity to study what is
the impact of Maggi Noodles on the youth, and study various different factors
connected to it through a survey. This Survey studies the consumption
frequency, its consumption after the ban and will it affect the sales once Maggi
Noodles is Re-launched.

Khaniwale, M (2015) the study of consumer behaviour is very essential in the

field of marketing as it helps firms to construct smarter marketing strategies by
getting an insight about what affects the decision making of consumers. The
purpose of this paper is to analyse the theoretical aspects of consumer buying
behaviour and the factors that influence it.

Hafiz Kashif Iqbal (2013) this paper is to check the effect of brand image and
advertisement causing upon the consumer buying behavior on public at
Gujranwala city. A sample of 200 questionnaires was used. Findings showed
that brand image and advertisement have strong positive influence and
significant relationship with Consumer buying behavior. “as per the study the
people of this city are more conscious about their status and image in the
society.

Clemenz, ETAL (Oct2012) this study has tried to find out the impact of brand
personality on the various dimensions of perceived quality towards durable
consumer goods. “Data has been collected in an experimental setting with a
strong and a weak brand, as well as a high and a low quality product. As per
the study the brand personality traits are linked with consumers.

Sung, Y. and Kim, J. (2010) this research proposes that some brand personality
dimensions relate more to brand trust, whereas other dimensions relate more to
brand affect. The results suggest that Sincerity and Ruggedness brand personality
dimensions are more likely to influence the level of brand trust.
 OBJECTIVES OF THE STUDY-

• To understand the influence of Maggi as a brand on consumers mind-set

• To understand the Brand loyalty of Maggi Noodles.

• To study consumption pattern of Maggi pre and post ban

• To understand the effectiveness of advertisement of Maggi Noodles to

improve its image post
ban

• To find out the reasons to shift to other noodles brand after Maggi ban

• To study the consumer perception for Maggi being safe or not and its
recommendation for children.
 RESEARCH METHODOLOGY

 INTRODUCTION

 Research in common parlance refers to a search for knowledge. The advanced

learner’s dictionary of current English lays down the meaning of research as “
a careful investigation of enquiry especially through search for new facts in any
branch of knowledge.”

 The systematic approach concerning generalization and the formulation of a

theory is also a research. The purpose of research is to discover answers to
questions through the application of scientific procedures.

 TITLE OF THE PROJECT

 A study on consumer buying behavior and brand loyalty towards

Maggi Noodles in Ambala Cantt

 RESEARCH DESIGN

 The design used for this research is descriptive research

methodology. The term descriptive research refers to the type of
research question, design, and data analysis that will be applied to a
given topic. Descriptive statistics tell what is, while inferential statistics
try to determine cause and effect.

 POPULATION – Population is a set from which samples are drawn. This

research has been conducted in Ambala Cantt on the local residents.

 SAMPLE-The sample includes 50 people in the age group of 18-50

years residing in Ambala Cantt.

 SAMPLE SIZE– The sample size for this study is 50 respondents

 SAMPLING METHOD - The sampling method used in this study is

Convenience sampling. Convenience sampling is a non-probability
sampling technique where subjects are selected because of their
convenient accessibility and proximity to the researcher.

 DATA COLLECTION METHODS –: The primary data was collected

by means of a survey. Questionnaire was prepared and the sample
unit was approached to fill up the questionnaire. The filled up
information was later analysed to obtain the required information.
  Secondary Data was collected for conducting depth study from
magazines, journals and articles written on the subject. Information
was also taken from the internet related to industry, company,
competitors, etc.

 SAMPLING TOOL- The sampling tool used in this research is

Questionnaire. A questionnaire is a means of eliciting the feelings,
beliefs, experiences, perceptions, or attitudes of some sample of
individuals. As a data collecting instrument, it could be structured or
unstructured.

TECHNIQUES OF STATISTICS ANALYSIS – In this project with the help

of advance descriptive statistics as well as with the help of Loyalty Index,
we will understand the consumption pattern and brand loyalty towards
Maggi noodles in Ambala Cantt. This report will also help as to find out the
outliers as well as non-value adding activities leading to decline in demand
of the product and acceptance of competitors by consumer.

LIMITATION OF THE REPORT

Every attempt will be taken to obtain the error free and meaningful result but as
nothing in this world is 100% perfect I believe that there will still the chance for
error on account of following limitations-

(1) Respondent’s unavailability.

(2) Courtesy bias.

(3) The project undertaken needs a lot of secondary data so the availability and
precision of this data forms the major limitation as the biasness has to be
minimized.

(4) The results and conclusions of the project cannot be generalized in all area of
an organization.

(5) There was a shortage of time and resources for the functioning the operation.
 Data Interpretation & Analysis

Part A

Brand Loyalty Index: BLI is a competitive benchmarking tool that identifies the
strength of a brand. It is broadly classified into two types.

INTERNAL FACTORS: Internal factors are broadly classified in to four types.

We are relying on the secondary data for measuring these four factors, because
consumers are not aware/concerned about the internal factors of a brand &
Internal factors are maintained in secrecy by a company. The four factors are:

1. CLARITY: It’s about what the brand stands for in terms of its
values, positioning proposition, audiences, customer insights &
drivers. We assign Maggi a score of 9 in this aspect because
without these values articulated internally and shared in the
organization it is not possible for a brand to be the leader in the
category consequentially over the years.
2. COMMITMENT: It is the extent to which the brand receives the
support in terms of time, influence & Investment. We assign
Maggi a score of 10 in this aspect the reasons are Brand
extension for other category of products that shows company’s
interest in the brand. Brand Campaign’s such as “2 Min mein
khushiyan movement” & other advertisements shows company’s
time & Investment in the brand.
3. PROTECTION: It is how secured brand in dimensions such as
legal protection, propriety ingredients, scale or geographical
spread. We assign Maggi a score of 8 in this aspect. The reason
is that The category itself doesn’t have legal protection because
the products across the brand are easily replicable.When it
comes to scale & geographical spread Maggi has early mover
advantage and a strong distribution channel and presence of
over 4.1 million outlets.
4. RESPONSIVENESS: It is the ability of the brand to respond to
market changes, challenges & opportunities. The brand should
have a sense of leadership internally & a desire and ability to
constantly evolve & renew itself. We assign Maggi a score of 9
in this aspect. The reason are Introduced new products like
Maggi Atta noodles, Veg multigrain noodles in response to the
competition.
 EXTERNAL FACTORS: It is mainly dependent on how consumers perceive
the brand. The ratings for the external factors are calculated based on our
questionnaire.

1. Gender
o Male
o Female

2. Age Group

O Under 18

O 18 – 24

O 25 and above

Loyalty: The following questions were asked to understand the

customer loyalty towards the brand or the product. We assign maggi 9
on terms of loyalty based on the responses of the survey.
 3. What was your consumption frequency before Maggi Noodles was banned?

45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Zero in a Once a Twice a Thrice a Four times Five times
Week Week Week week a week a week

Consumtion Behaviour:

40% of the sample consumed Maggi Noodles at least once a week, 29% of
sample consumed twice a week, the remaining were less than 10% who
consumed it more than thrice a week. 10% of the sample was found to consume
less than a week, when questioned some of them denied the consumption totally
and the remaining said to have less frequently may be once or twice a month.
The youth are heavily addicted to Maggi Noodles but due to the recent ban there
has been a diminishing change in the consumption pattern of maggi noodles.

DIFFERENCIATION: This component measures how distinct the brand is from the
competition. Differentiation is the one that helps the brand to charge premium.

For measuring the differentiation of Maggi following question was asked

4. Did you consume any other Noodles other than maggi after the ban?

no

yes

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

 56% of the sample consumed Noodles even after it was banned this shows the
level of addiction towards noodles, while the remaining 44% did not consume as a
few respondents said it was not available in the market and they missed maggi more
than any other noodles in the market.
This shows that there was a demand for maggi noodles even after the
availability of substitutes in the market.
The Spuriously loyal maggi consumers had to switch to other substitute
noodle only because its unavailability in the market.

PRESENCE: The degree to which a brand feels omnipresent and is talked

about positively by consumers, customers and opinion formers in both
traditional and social media.
The following questions were asked to find the presence of the Maggi

5. Do you now trust Nestle as a Brand?

No

Yes

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

After the increased levels of lead content found and coming clean after taking so
many remedial measures, 91.7% of the sample seem to have gain back
the trust on Nestle, where as 8.3% of respondents still don’t trust nestle as a
brand. Hence, Nestle should work to build up its brand and trust amongst the
public to keep its sales intact and continue its operations in keeping the primary
goal to achieve maximum consumer satisfaction and regain the same Brand
Image that it once had.

6. Do you think advertisements of maggi after its re-launch improved its image?
 Effectiveness of Advertisements

10%

55%

45%

Yes No Can’t Say

55 % of the customers agreed that the advertisements of maggi after its re- launch
definitely improved its image, on the other hand 45% of the customers do not agree
that the image of maggi improved because of the advertisements and includes
customers who are loyal towards maggi and doesn’t need advertisements to buy
maggi and it also includes those who are not fond of maggi and will not buy it even if
the advertisements are effective or not. Only 10% of the customers are confused
about it being effective or not.

UNDERSTANDING: This component in depth understanding of the distinctive

qualities and characteristics of the brand and those of the company.

7. Do you consume other products offered by Nestle?

No

Yes

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

 91.7 % of the sample size consumed other products that were offered by
Nestle, thus the ban on maggi noodles did not affect the sale of nestle`s other
products. Even after ban on Maggi Nestlé’s share have been rising. The reasons
behind this could be the clearance of tests in Singapore, UK, Canada, and other
Indianmade Maggi importing countries. Also market sees Maggi as a different brand
from nestle which is not expected to have an effect on Nestlé’s other products. We
assign a score of 8.

8. Would you prefer Maggi Noodles for the children?

No

Yes

40.00% 42.00% 44.00% 46.00% 48.00% 50.00% 52.00% 54.00% 56.00%

55 % of the youth agreed that Maggi Noodles should be preferred for the children
whereas 45% of the youth denied preferring it for the children. Looking into the future
Nestle might face change in the sales of maggi noodles.

SAFETY: This components states how safe the brand and its focused
products are. The following questions are based on this component.

9. How will you rate Maggi Noodles on Health Safety?

50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Very Safe Safe Affects little Very Unsafe
Only 8% of the youth said Maggi Noodles was very safe for consumption, 48%
said it was safe, 35% said it affects little and 8% declared as it was very
unsafe. Of the above results we can state that half of sample have started
consuming maggi noodles and have considered it safe for consumption
whereas the remaining are still feel that maggi affects health.

10. Do you prefer Maggi Noodles after it is re-launched with approval of FSSAI
(Food Safety and Standards Authority of India?

22 %

78 %

Yes No

78% of the youth said they are consuming Maggi Noodles after the re-
launch, whereas 22% of the youth denied consuming after the re-launch.

CONSISTENCY: This measures the degree to which a brand is experienced without

fail across all touch points and formats. The following question is was asked to find
the consistency of the brand

11.What is your Frequency of consuming Maggi after its re-launch?

Increased Remain the Same Decreased

6 % of the youth said that the consumption frequency increased, 43% said its
Consumption frequency decreased and the remaining 51% stated that it remains
the same. Thus more than 50% of the youth still favour Maggi after the Re-
Launch.

12. What is the level of satisfaction with Maggi after its re-launch?

Satisfaction Level

6%
7%
Very Satisfied

15% Somewhat Satisfied

52% Neutral
Least Satisfied
Not Satisfied
20%

Approximately 52% of the customers are highly satisfied with maggi and 20 % of
the customers are somewhat satisfied with the maggi because they think that
the taste of maggi is not same as before. 15% of the customers are neutral,
around 7 % and 6 % of the customers are least satisfied and not satisfied with
the new maggi after its re-launch respectively.

Further it can be stated that it is the loyal customers of Maggi who

helped it survive through the hardships that the Nestle Maggi went through,the
ban,impact in sales,loss of customers etc.
 Brand Loyalty Index:

Attribute Score

Clarity 9

Commitment 10

Protection 8

Responsiveness 9

Loyalty 9

Differentiation 8

Safety 7

Presence 8

Understanding 7

Consistency 6

TOTAL 81

Maggie scored a 81 on Loyalty Index.

 FINDINGS & SUGGESTIONS

FINDINGS

• 56% of the youth consumed Maggi Noodles after the government banned it,
• 91% of the youth still trust Nestle as a Brand,
• 79% of the youth are now aware Maggi Noodles is safe to eat,
• 45% of the youth still do not prefer Maggi Noodles for children,
• Two Third of the sample is still rate Maggi Noodles as unsafe,
• 78% of the youth accepted consuming Maggi Noodles after its re-launch,
more than 50% of the youth favours Maggi Noodles after it is Re-Launched.

SUGGESTIONS

• Maggi Noodles should double check the stock and get approved from experts
before sending the stocks to the market,
• Create an urge in the youth through advertisements and re-creating the old
memories through commercial ads and campaigns,
• Increase in the Marketing Campaigns will pick up the sales and gain the lost
consumers
• The company should advertise its product by depicting attributes related to
Health like Nutrition value, % of Vitamins, Proteins, etc. This would help in
customers perceiving the product as healthy.
• Issues with multi brick packets-Once opened they cannot be store as it is and
the contents absorbs moisture. This issue could addressed by providing one
extra Inner Zip-Seal facility packing along with the existing outer pack.
• Maggi need to change the present packing material to eco-friendly paper-
packs. This could help in developing ‘Planet’ part of triple bottom line concept for
Maggie.
• Rise in Maggi price after re-launch is not acceptable. Instead re-launch of
Maggi could have been done without changing price and taste to maintain quality
and brand perception of customer.
• Electronic purchase of Maggi pack from online is not done on extensively.
Maggi needs to promote with a different kind of strategy for its online sale.
• For Deeper penetration into market & to ensure uniform availability,
supply of Maggi with vending machine at strategic locations can be done.
 CONCLUSION

Nestle will have to work hard to build up the faith among the people that it
once used to had though Nestlé India has conducted over 3,500 tests,
representing over 200 million packs, in both national as well as international
accredited laboratories and all reports are clear. In addition to these, various
countries including USA, UK, Singapore, Australia and others have found
Maggi noodles manufactured in India safe for consumption.

In India Nestle were asked by the regulator to recall the product and they
stopped selling it. In fact, before the order was issued, Nestlé India had
announced it had stopped selling MAGGI Noodles. This is because concerns
about the product led to confusion for the consumer to such an extent that
Nestlé India felt it was necessary to take the product out of the market while
we engage closely with the regulators and others to discuss the situation.
They further have received test results from all three laboratories mandated by
the Hon’ble Bombay High Court to test MAGGI Noodles samples. All the 90
samples, covering 6 variants, tested by these laboratories are clear with lead
much below the permissible limits.

Winning back the trust of consumers and investors is key to reviving the brand
image.
The business performance of the company originates from the consumer
performance. Nestle certainly recognizes this, and it is evident by the emphasis
it led on rebuilding trust and consumer confidence at Bulcke’s press meet on
June 16, 2015.
 BIBLIOGRAPHY

Jain, A (2016), A study on Maggi ban and simultaneous launch of Patanjali Atta
noodles; TMIMT International Journal “Special Issue- 2016”, ISSN 2348-988X

Maniyal Nitin J (2015), IMPACT OF MAGGI NOODLES ON THE YOUTH;

PEZZOTTAITE JOURNALS Volume 4, Number 3, July – September’ 2015

Khaniwale, M (2015), Consumer Buying Behaviour; International Journal of Innovation

and Scientific Research Vol. 14 No. 2 Apr. 2015, pp. 278-286

Hafiz Kashif Iqbal (2013), Impact of Brand Image and Advertisement on Consumer
Buying; World Applied Sciences Journal 23 (1): 117-122, 2013

Clemenz, ETAL, Oct2012, How the personality of a brand impacts the perception of
different dimensions of quality; Journal of Brand Management Oct2012, Vol. 20 Issue
1, p52-64.13p

Sung, Y. and Kim, J. (2010) Effects of brand personality on brand trust and brand
affect. Psychology & Marketing 27 (7): 639–661
 Questionnaire

Topic: - “CONSUMER BUYING BEHAVIOUR AND BRAND LOYALTY TOWARDS

NESTLE MAGGI”

Dear Respondent,

I am an MBA student conducting a research study on the CONSUMER BUYING

BEHAVIOUR AND BRAND LOYALTY TOWARDS NESTLE MAGGI . I need some
information from you and I assure you the information will be kept confidential and
used for research purpose only.

Name _______________

3. Gender
o Male
o Female

4. Age Group

O Under 18

O 18 – 24

O 25 and above

5. What was your consumption frequency before Maggi Noodles was banned?

o Zero in a week
o Once a week
o Twice in a week
o Thrice a week
o Four times a week
o Five times a week

6. Did you consume any other Noodles other than Maggi after the ban?

o Yes
o No

7. Do you now trust Nestle Maggi as a Brand?

 o Yes
o No

8. Do you think advertisements of maggi after its re-launch improved its image?

o Yes
o No

9. Do you consume other products offered by Nestle?

o Yes
o No

10. Would you prefer Maggi Noodles for the children?

o Yes
o No

11. How will you rate Maggi Noodles on Health Safety?

o Very Safe
o Safe
o Affects Little
o Very Unsafe

12. Do you prefer Maggi Noodles after it is re-launched with approval of FSSAI
(Food Safety and Standards Authority of India?

o Yes
o No

13. What is your Frequency of consuming Maggi after its re-launch?

o Increased
o Remain the same
o Decreased

14. What is the level of satisfaction with Maggi after its re-launch?

o Very Satisfied
o Somewhat Satisfied
o Neutral
o Least Satisfied
o Not Satisfied