AMITY BUSINESS SCHOOL

STUDY ON CONSUMER BEHAVIOUR TOWARDS MAGGI NOODLES

Submitted to: Submitted by:

Dr. Anurupa B. Singh Tanya Jaiswal M&S B-02
Associate Professor Amal Krishna Sharma B-19
Amity Business School Himanshu Bhati B-25
Amity University Revati Rastogi B-65
 TABLE OF CONTENTS

CHAPTER: 1 INTRODUCTION

 INDUSTRY PROFILE
 COMPANY PROFILE
 PRODUCT PROFILE

CHAPTER: 2 LITERATURE REVIEW

CHAPTER: 3 OBJECTIVES

 RESEARCH METHODOLOGY
 LIMITATIONS

CHAPTER: 4 DATA ANALYSIS & INTERPRETATION

CHAPTER: 5 FINDINGS&SUGGESTIONS

CHAPTER: 6 ANNEXURES

 QUESTIONNAIRE

 BIBILIOGRAPHY
 CHAPTER – 1
INTRODUCTION
 INTRODUCTION TO NOODLES

Noodles are a staple food in many cultures made from unleavened dough which
is stretched, extruded, or rolled flat and cut into one of a variety of shapes.
While long, thin strips may be the most common, many varieties of noodles are
cut into waves, helices, tubes, strings, or shells, or folded over, or cut into other
shapes. Noodles are usually cooked in boiling water, sometimes with cooking
oil or salt added. They are often pan-fried or deep-fried. Noodles are often
served with an accompanying sauce or in a soup. Noodles can be refrigerated
for short-term storage, or dried and stored for future use.

In American English usage , the word “noodles” is an inclusive term

that denotes flour paste product in various shapes. In British English usage it
generally a food in the form of long , thin strips of flour paste products. The
material composition or geocultural origin must be specifid when discussing
noodles.the word derives from the German word “nudel”
CHAPTER – 2
LITERATURE
REVIEW
 REVIEW OF LITERATURE

1 Senior Academic Head, BBA, Podar World College, Maharashtra, India

2 Assistant Professor, Department Of Accountnacy, Thakur college of science &

commerce, Maharashtra,
India

ABSTRACT
CASE STUDY 1

This research paper focuses on perception of consumers post ban towards Maggi
instant noodles. Researcher has taken 50 sample size of age group of 15 and above.
Research is conducted in city of Mumbai using convenience sampling method. The
study deals with consumer behavior towards Maggi in post ban scenario is
interlinked with wellness and health industry as ban was due to hazardous content
in the Maggi.
Maggi is an international Brand of instant noodle owned by Nestle since 1947.
Maggi instant noodle penetrate in India in 1983. They instantly capture market with
an entirely new food category called as instant noodle.
The target consumer was children and mothers , with its 25 years, it has reached
90% of instant noodle market.
Maggi is the great revenue contributor for Nestle. Suddenly there is a drop in sale
due to negative publicity due all wrong reason like presence of hazardous content
which has shaken the trust of Consumer. Researcher has Highlighted the
comparative analysis of maggi consumption in pre and post ban scenario.

The study conducted in Parul University in September 2018

CASE STUDY 2

Consumers of nestle product refers to the level of happiness or dissatisfaction with

product and brand. The researchers have taken the sample size of 100 respondents
of students, children, businessman, servicemen and housewives because majority
these people consume nestle product in the market. The main objective of the
research is to study about consumer satisfaction of nestle product with
understanding the consumer profile, understanding the effectiveness of marketing
strategy and examine the loyalty of consumer. The research design chosen is
descriptive in nature. For this study, the sampling technique chosen is convenience
sampling. This paper is a result of research carried out in Baroda city and it is based
on the information given by respondents through questionnaire.
INDUSTRY PROFILE
 NOODLES INDUSTRY PROFILE

Indian noodles market (instant noodles) is estimated at INR 1,300 to 1,600

crores (USD 300 –USD 350 mn) in 2010. According to estimates, the market
is expected to reach INR 3,000 -3,500 crore clocking a CAGR of 20%. The
market is dominated by instant noodles and nestle’s brand – Maggi (which was
first noodle brand to be introduced in india in mid 1980s). Nestle has virtually
dominated the Indian noodle market till now but lately many large FMGG
players and retail chains have launched their product in this lucrative space.

Urbanization , rising income levels , working couples, interstate migration and

changing lifestyle of young India are key drivers for the noodles market . The
product was positioned as meal which is filling and can be prepared in just a
few minutes , thus offering both convenience and time saving.

TRENDS IN INDIA NOODLE MARKET

1. Increasing competition : competition in instant noodle category has

intensified with players such as Glaxo Smith Kline(Horlicks foodles), ITC
(sunfeast Yippee noodles ) , capital foods and Hindustan Unilever
launching new product in the market . Private label brands such as Tasty
Treat by Future Group (Big Baazar retail chain ) have also been launched
an it is expected that many more private label brands may hit the market .

2. New product launches and extensive marketing : All players new or

old have been busy launching new products and marketing campaigns .
 Maggi has Launched an extensive campaign with their new product
vegetable multigrain noodles. Tasty Treat increased its variants from two
to five . Similarly, foodles is stressing on the health aspect of its products.

3. Stress on health and wellness : As on all other food categories, players

are stressing on health and wellness aspects of their products . Maggi
launched Atta noodles and multigrain noodles to customers while Glaxo’s
Foodles also stresses on the multigrain aspect of their product.

4. Traditional flavours still dominate: Masala , chicken and tomato

are most popular flavours in the market

5. Addressing rural market : Noodles are primarily consumed in urban

India and to expand this market companies such as Nestle have
introduced small sized and low cost products to address the demand of
rural market . The success of this effort is still to be seen.
COMPANY PROFILE
 HISTORY OF NESTLE

The history of Nestlé began in Vevey, Switzerland, in1867 when founder Henri
Nestlé created one of the first infant foods in response to the need for a healthy
and affordable product to serve as an alternative for mothers who could not
breastfeed their babies. He called his product Farine Lactée Henri Nestlé.

Within a few years, the Farine Lactée product was marketed in Europe.
Nestlé called his company Société Farine Lactée Henri Nestlé. In 1874,
Nestlé developed its condensed milk product, to contend with the Anglo-
Swiss Condensed Milk Company,

a competitor that was producing cheese, instant formulas and had opened
Europe’s first sweetened condensed milk factory in Cham, Switzerland,
to market the first condensed milk, MILKMAID.

The two companies merged in 1905, the year after Nestlé added chocolate to
its line of foods. The newly formed Nestlé and Anglo- Swiss Milk Company
had factories in the United States, Britain, Spain and Germany. Soon the
company was manufacturing in Australia with warehouses in Singapore, Hong
Kong and Bombay. Most production however still took place in Europe.

Switzerland was neutral in the war and became increasingly isolated in Europe.
Because of distribution problems in Europe and Asia, Nestlé opened factories in
developing countries in Latin America. Production increased dramatically after
America entered the war and Nescafé became a main beverage for the American
soldiers in Europe and Asia. Total sales increased by $125 million from 1938 to
1945.
After 1945, Nestlé continued to prosper, merging with Alimentana S.A., a
company that manufactured soups and seasonings, in 1947. In the coming
years, Nestlé acquired Cross & Blackwell, Findus frozen foods, and Libby’s
fruit juices. Nescafé instant coffee sales quadrupled from 1960 to 1974, and the
new technology of freeze drying allowed the company to create a new kind of
instant coffee, which they named Taster’s Choice.
MAIN BRANDS

BEVERAGES :

Nescafe , Sunrise Premium , Sunrise Special , Sunrise Extra , Teamate ,

Milo.

MILK PRODUCTS :

Lactogen , Nestogen , Nan , Nestle Milk ,Dhai, Everyday Ghee, Butter.

.

CULINARY PRODUCTS :

Maggi soup, Maggi noodles, Maggi cubes, Maggi Pickles

CHOCOLATES :

Kitkat , Milky Bar, Munch , Bar One ,Classic , Chaco Stick , Milky Bar
Chaco.

MINERAL WATER :

Pure life.
PRODUCT PROFILE
 MAGGI NOODLES

Brand MAGGI has started “Simply Good” initiative, in line with Nestlé’s global
commitment which is firmly embedded in our Purpose and Values which is to
enhance quality of life and contribution to a healthier future. In India the simple
good journey has started with everyone’s Favourite Maggi Noodles with new
and healthy version of it with Iron which will now provide consumers 15% of
their daily Iron requirement. Iron deficiency is one of the leading micronutrient
deficiencies in our country

Maggi noodles is a brand of instant noodles manufactured by Nestlé. The

brand is popular in Australia, India, South Africa, Brazil, New
Zealand, Brunei, Malaysia, Singapore, Sri Lanka, Bangladesh,Pakistan, Fiji and
the Philippines. In several countries, it is also known as "maggi mee" (mee is
Indonesian/Malay/Hokkien for noodles).

Maggi noodles are part of the Maggi family, a Nestlé brand of instant soups,
stocks, and noodles. In Malaysia, there are fried noodles made from maggi
noodles known as Maggi goreng. Maggi noodles recently introduced a new
variety of its noodles, to cater for the health conscious like 'No MSG', 'Less
Salt', and 'No Trans fat'. A wholewheat flour based noodle variation marketed
by the name "Vegetable Atta Noodles" has been introduced in India.
Range of Maggi Products:-

Noodles :-

MAGGI noodles is one of the largest and most loved food brands
that defines Instant Noodles in India.

Continuing to spread joy as it has done for the last 25 years, your favourite
MAGGI Noodles is as tasty as ever and even provide essential nutrients for
all age group.with the goodness of protein and calcium ,MAGGI Noodles is
available in 4 delectable flavours –MASALA , CHICKEN-TOMATO-and
CURRY.

Sauces:-

MAGGI Sauces have been in integral part of the

India consumers household for decades now.
To carter to the diverse INDIAN palate ,MAGGI has a host of variants like:

The quintessential Rich Tomato Ketchup and Rich Tomato sauces (no onion
no garlic) The unique Hot & SweetTomato Chilli sauces and oriental chilli
garlic sauces the Indian style tomato chatpat sauces maggi pichku-pichkoo is a
small pack which makes MAGGI tomato ketchup affordable to a host of new
consumers . and now , MAGGI makes the delight “bigger”by introducing a
badapichkoo, which is a large tomato ketchup pack which ensures that the fun
goes on and on.The growing popularity of asian in the united states has given
rise to an array of convenient new food products that makes preparing
authentic Asian cuisine easier than ever before .

MAGGI is also an ingredient deeply –rooted in traditional cooking throughout

latin American and the caribbean , due to its convenience and a wide range of
products , MAGGI has been passed down from generation to generation as the
secret to enlivening any dish with that special latino flavour . When looking for
helpful meal ideas to bring to your table , Maggi will help you enhances any dish
by adding a savory authentic taste.

MAGGI has a vast product range . Some of the products of maggi are worldwide
known like maggi noodles and maggi soup while there are also some products of
maggi like maggibhuna masala which are not much known as compare to other
products of maggi.
CHAPTER – 3
CONSUMER
BEHAVIOUR
 CONSUMER BEHAVIOUR

Consumer orientation stems from the company’s adoption and

implementation of the marketing concept – a philosophy of every business unit
which has triple implications namely :

1) The victory of any business unit rests on consumers who are willing to
accept and play for the product or services.

2) The firm must be aware of what the market want well in advance of
production and

3) Consumer wants must be monitored continuously for assured success

over competitors .

The consumer are the arbiters of fortune in business in highly

competitive Economics system , the success , survival and growth of
firm warrants accurate knowledge about – the consumer is the crucial
task of every marketing manager.
 STEPS IN CONSUMER BUYING PROCESS

The following are the five steps generally followed by the consumer while
buying a product .

1) Need recognition :

Need recognition is the awareness of the want or a desire or a

consumption problem with out whose satisfaction the consumer
feels restless and tension – charged .

2) Information search :

Consumer interested is indicated in the consumer’s willingness to speak

further information about the product or service . since there are
varieties of product and he seeks to have maximum satisfaction , he
searches relevant information .

3) Evaluation and intension :

The evaluation stage is the stage of mental trial of the produce or

a service.

4) Purchase Decision :
decision to purchase implies consumer commitment for a produce or a
service . practically , it is the last stage in the buying process because ,
it completes the exchange process.

5) Post Purchasing Reaction :

The post purchase experience may be a set of positive or negative

feeling. Positive feeling or satisfaction will result is repeat sales or at
least recommending the product or services to others : on the other hand ,
dissatisfaction or negative feeling creating anxiety and doubts .
CHAPTER – 4
OBJECTIVES
 OBJECTIVES

1) To know consumer’s behaviour towards maggi 2 minute noodles

2) To find out level of satisfaction of the consumer towards maggi 2minute
noodles.
3) To know the consumers perception regarding the price of maggi noodles
4) To understand the stimulus magi noodles as a brand on consumer mind
set .
5) To understand the perception of the people about maggi.
 RESERARCH
METHODOLOGY
 RESEARCH METHODOLOGY

“ To collect the information , marketing research is taken into consideration

.marketing research has been define as”The Systematic gathering and services
from producer to the consumer”.

DATA SOURCES :

There are two sources of collection data:

1) Primary sources
2) Secondary source
In the survey being conducted both primary and secondary sources of
data has been in collection of relevant information.

Primary and Secondary Sources :

Researchers need to consider the sources on which to base and confirm their
research and findings. They have a choice between primary data and secondary
sources and the use of both, which is termed triangulation, or dual methodology.

Primary data is the data collected by the researcher themselves, i.e.

1. interview
2. observation
3. action research
4. case studies
5. life histories
6. questionnaires
7. ethnographic research
8. longitudinal studies
Secondary sources are data that already exists

1. Previous research
2. Official statistics
3. Mass media products
4. Diaries
5. Letters
6. Government reports
7. Web information
8. Historical data and information

APPROACH SURVEY :

Survey is best suited for the descriptive research . They are undertaken to
learn about peoples’s knowledge , beliefs , preferences and satisfaction.

Questionaire :

This consist of a set of questions presented to respondents for their

answers .Questionaires need to be carefully developed and tested before using it
for data collection.
 FORM OF INSTRUMENT

Closed ended questions :

The form used here is closed ended question with all the possible answer
to make the respondents feel comfortable.

Open ended question are useful in knowing the ideas of the respondents
in their own words.

Types of questions asked:

A question offering two answer choices

Multiple choice : A question offering three or more choices.

Rating Scale :

A scale rates some attributes from excellent to poor

Sample : The sample size selected is 100

Sampling procedure :

The procedure is simple random sampling . Ever member of the population

has an equal chance of selection .
LIMITATIONS
 LIMITATIONS

Through ever effort has been made the project study comprensive
there has been limitations.

1) The study restricts to Kurnool city only.

2) Sample size of 50 respondents has been taken which is too small to
generalize trend.
3) Research time was limited so in depth analysis could not be done
4) The method used in this project are random sampling method and
results obtained may not be fully accurate and reliable
 CHAPTER-5

DATA ANALYSIS
&
INTERPRETATION
TABLE SHOWING THE TYPE OF FOOD PREFERRED
BY CONSUMERS

Types No. Of respondents Percentage

Fast food 14 14%
Homemade food 76 76%
Packed food 4 4%
Ready made food 6 6%

Inference:-

From the above table , it is clear that

14% of consumers preferred” fast food”

76% of comsumers preferred” homemade food”

4% of consumers preferred” packed food”

6% of consumers preferred” ready made food”

Source : questionnaire
GRAPH SHOWING THE TYPE OF FOOD
PREFERRED BY CONSUMERS

preference

4% 6% 13%

fast food
homemade food
packed food
76% ready made food
 TABLE SHOWING THE TYPE OF FAST FOOD
PREFERRED BY CONSUMERS

Types No . of respondents Percentage

In fast food center 30 30%

Homemade fast food 70 70%

Inference:-

From the above table it is clear that

30% of consumer preferred towards in fast food centers

70% of consumers preferred towards homemade fast food

Source : questionnaire
 GRAPH SHOWING THE TYPE OF FAST
FOOD PREFERRED BY CONSUMERS

peference

30%

fast food Center

Home made fast food

70%
 TABLE SHOWING THE DIFFERENT BRANDS OF
NOODLES PREFERRED BY CONSUMERS

Brands No.of respondents percentage

Maggi 62 62%
Yippee 28 28%
Horlicks 4 4%
Top ramen 6 6%

Inference :

From the above table, it is clear that

62% of market occupied by Maggi

28% of market occupied by Yippee

But only 4% and 6% of market occupied horlicks and top ramen

Source : Questionnaire
GRAPH SHOWING THE DIFFERENT BRANDS OF
NOODLES PREFERRED BY CONSUMERS

BRAND

100%

80%
62%
60%

40% 28%

20% 4% 6%
0%
Maggi Yippee Horlicks Top ramen
 TABLE SHOWING THAT VARIOUS
RESPONDENTS USING DEFFERENT
VARIETIES OF MAGGI NOODLES

Percentage
Varieties No .of respondents

Vegetable atta noodles 40 40%

2 minute noodles 44 44%
Hungroo noodles 2 0.5%
Chicken noodles 14 7.5%

Inference :

From the above table ,it is clear that

40% of respondents using vegetable atta noodles

44% of respondents using 2 minutes noodles

0.5 % and 7.5% of respondents are using chicken and hungroo

noodle Source : Questionnaire

 GRAPH SHOWING THAT VARIOUS
RESPONDENTS USING DEFFERENT
VARIETIES OF MAGGI NOODLES

varieties of maggi noodles

varieties of maggi noodles

100%
80%
60% 40% 44%
40%
7.50%
20% 0.50%
0%
vegetable 2 minute hungroo chicken
atta nooldes noodles noodles noodles
TABLE SHOWING THE CONSUMERS PERCEPTION
TOWARDS MAGGI PRODUCTS

Good for health 10%

Ready to eat 32%
Junk food tasty 30%
Fun eating 28%

Inference:

From the above table ,it is clear that

10% of consumers perception about maggi products are Good for health

32% of consumers perception about maggi products are Ready to eat

30% of consumers perception about maggi products are Junk food tasty

28% of consumers perception about maggi products are Fun eating

Source: Questionnaire
 GRAPH SHOWING THE CONSUMERS
PERCEPTION TOWARDS MAGGI PRODUCTS

perception

100%

80%

60%
32%
40% 30% 28%

20% 10%

0%
Good for ready to eat junk food fun eating
health