BUSINESS RESEARCH

MANAGEMENT
ASSIGNMENT

 A RESEARCH REPORT ON MAGGI

BAN CASE.

PREPAIRED BY:
ARSLAN AHMED.
ABDUS SAMAD.
FRAZ - UL – HAQ, DARAIN SIDDIQUI and
ABDUL MAJEED.
OF BBA 2ND YEAR 4TH SEMESTER SEC – A
“Under guidance of Mrs. Sayeedun Nisa, Assistant professor
Department of Management, SMBS, JAMIA HAMDARD.”

TABLE OF CONTENT

 EXECUTIVE SUMMARY
 INTRODUCTION
 HISTORY OF NESTLE
 TASTE AND PREFRENCES
 CASE STUDY
 OVERCOMING FROM THE CRISIS
 QUESTIONNAIRE
 ANALYSIS OF QUESTIONNAIRE

 CONCLUSION

 BIBLOGRAPHY/REFRENCES
 EXECUTIVE SUMMARY

In this report we are going to take a look on the following points:

 How Maggi became the most famous instant noodle.
 What was the quality of Maggi that so many people were
consuming it?
 Who was the manufacturer of Maggi, introduction to Nestle.
 What was the consumers demand and the taste of Maggi was
they getting what they were willing?
 How and why Maggi was banned in India in 2015.
 How Maggi overcome that crisis and again became the most
lovable instant noodle.

After completing this report, we will take the costumers responses that
what they think about Maggi after and before ban and how likely they
were consuming it before and after ban.

By this report we are trying to know about Maggi that was there any
changes in Maggi after getting a clean chit and does the company
looked over the problems that Maggi was having before its ban and
how likely does the consumers liked it after the overcoming from the
crises.

Let’s get started with the report...

 INTRODUCTION TO MAGGI.
Maggi is a Nestlé brand of instant soups, stocks, bouillon
cubes, ketchups, sauces, seasonings and instant noodles.
The original company came into existence in 1872 in
Switzerland, when Julius Maggi took over his father mill. It
quickly became a pioneer of industrial food production,
aiming at improving the nutritional intake of worker
families. It was the first to bring protein-rich legume meal
to the market, which was followed by ready-made soup
based on legume meal in 1886. In 1897, Julius Maggi
founded the company Maggi GmbH in the German town
of Singe where it is still established today. Maggi Comes
to India – teething troubles Maggi noodles was launched
in India in the early1980s. Carlo M. Donati, the present
Chairman and Managing Director of Nestle India Ltd,
brought the instant noodle brand to India during his short
stint here in the early eighties. At that time, there was no
direct competition. The first competition came from the
ready-to-eat snack segment which included snacks like
samosas, biscuits or maybe peanuts, that were usually
‘the bought out’ type. The second competition came from
the homemade snacks like pakoras or sandwiches. So
there were no specific buy and make snack! More over
both competitors had certain drawbacks in comparison.
Snacks like samosas are usually bought out, and outside
food is generally considered unhygienic and unhealthy.
The other competitor, ‘homemade’ snacks overcame both
these problems but had the disadvantage of extended
preparation time at home. Maggi was positioned as the
only hygienic homemade snack! Despite this, Nestlé
faced difficulties with their sales after the initial phase.
The reason being, the positioning of the product with the
wrong target group. Nestle had positioned Maggi as a
convenience food product aimed at the target group of
working women who hardly found any time for cooking.
Unfortunately, this could not hold the product for very
long. In the course of many market research sand
surveys, the firm found that children were the biggest
consumers of Maggi noodles. Quickly they repositioned it
towards the kids segment with various tools of sales
promotion like color pencils, sketch pens, fun books,
Maggi clubs which worked wonders for the brand. Maggi
was positioned as ‘2-minute noodles’ with a punch line
that said ‘Fast to cook! Good to eat!’ And this gave the
implied understanding to the consumer that it was a
‘between meals’ snack.
 HISTORY OF NESTLE

The history begins in 1866, with the foundation of the Anglo-Swiss

Condensed Milk Company. Henri Nestlé develops a breakthrough infant
food in 1867, and in 1905 the company he founded merges with Anglo-
Swiss, to form what is now known as the Nestlé Group. During this
period city grow and railways and steamships bring down commodity
costs, spurring international trade in consumer goods.
Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk
Company, established in 1866 by brothers George and Charles Page,
Farine Lactée, founded in 1866 by Henri Nestlé. The company grew
significantly during the First World War and again following the Second
World War, expanding its offerings beyond its early condensed milk and
infant formula products. The company has made a number of corporate
acquisitions, including Crosse & Blackwell in 1950, Findus in 1963,
Libby's in 1971, Rowntree Mackintosh in 1988, Klim in 1998, and Gerber
in 2007.
The company has seen various controversies, facing criticism and
boycotts over its marketing of baby formula as an alternative to
breastfeeding in developing countries, its reliance on child labor in
cocoa production, and its production and promotion of bottled water.
 HENRI NESTLE

TASTE AND PREFERENCES OF

CONSUMERS.

Maggi instant noodles are popular in Bangladesh, Pakistan, Singapore,

Malaysia, Australia, New Zealand, and India. Nestle has 39% market
share in Malaysia, where "Maggi" is synonymous with instant noodles
and had 90% market share in India prior to a nationwide ban by the
Food Safety and Standards Authority of India. Following the ban, the
market share was reduced to 53% in India. In Malaysia, fried noodles
made from Maggi noodles are called Maggi goring. Maggi Instant
noodles are branded as "Maggi 2 Minute Noodles" in Australia and New
Zealand. Maggi Instant noodles are branded as "Maggi 2 Minute
Noodles" in India.

Health is the flavor of the season. Food companies in India are growing
aware of the increasingly changing consumption trends and taste
preferences among the Indian junta. No surprises, but this is the reason
more and more companies are coming up (or are actually re-marketing)
with products that are healthy. Take for example Coke and Pepsi; both
have already started looking into the non-carbonated drinks category
section. Maggi first introduced in the market Maggi Atta Noodles –
which it claimed was a healthy food as it was made of wheat flour
followed by soups. Nestle India, in an effort to carry on with its trend of
providing the Indian consumers healthy food recently introduced a
range of Healthy Soups. The entire range consists of the following;
Maggi tomato, mixed vegetable, tomato vegetable, mushroom,
chicken, sweet corn chicken and hot and sour vegetable. The product is
priced at rs 25 for 70grams.Maggi became successful because it
understood consumers. The brand never wanted to change Indian
consumers habit. It did not had ambitions about changing Indians
breakfast or dinner preferences. What Maggi did was to slowly attach
itself to Indian consumers need without disruption. Maggi was also
closely watching consumer preferences. When consumers wanted
healthy food, Maggi launched Atta Noodle variants that was healthy.
More importantly this move addressed the concerns of Homemakers.
The brand extended itself to multiple segment but without diluting the
core brand equity. Maggi over these years have made lot of mistakes. It
made mistakes because the brand was willing to experiment. More
importantly the brand learned from those mistakes and corrected itself.
Maggi also invested heavily in brand building. The campaigns for one of
Maggi products were always there in the media which kept the brand
fresh in the mind of the consumers. Maggi personifies the basic
principles of understanding consumers, innovating and investing in the
brand. Maggi is one packaged food brand that has only seen its
popularity grow in the past many years and the secret to the success is
that instead of trying to change the food habits of consumers, it has
tried to align itself with local tastes and preferences with the ‘fast to
cook and good to eat’ promise.
  THE 2 MINUTE NOODLE MAGGI

MAGGI BANNED IN INDIA.

CASE STUDY

 In 2015 two FDA officials said all the packets of instant noodles
tested in the state run laboratory were contaminated. They
found a LEAD concentration of 17.2 parts per million (ppm),
nearly seven times the permissible limit. The FDA officials said
the acceptable limit of LEAD ranges between 0.01 ppm - 2.5
ppm.

 the scientist also found high levels of added MONOSODIUM

GLUTAMATE (MSG), a taste enhancer in the noodles.
 MAGGI instant noodles contained dangerous amount of LEAD
and MONOSODIUM GLUTAMATE (MSG). They had to
immediately issue orders against the company.

 The case was under D.G. SRIVASTAVA, the deputy inspector

general of the FDA in Lucknow, capital of Uttar Pradesh.

 Food inspector ordered nestle India to recall a batch of Maggi

noodles from shops across the country, saying that the product
contained dangerous level of LEAD and MONOSODIUM
GULUTAMATE.

 The food safety and Drugs administration (FDA) in the northern

state of uttarpradesh said high LEAD content was found during
routine tests on two dozens of instant noodles, manufactured by
nestle in India.
 NESTLE’S OVERCOME FROM
THE CRISIS
 That complacency was shattered by an event that everyone in the
company refers to as ‘the crisis.’ In April 2015, a government
referral laboratory in Kolkata, following up on an initial report
from Barabanki in Uttar Pradesh, reported excess lead in samples
of Maggi, Nestlé’s instant noodles brand that then commanded 63
per cent share of India’s Rs 5,000 crore noodle market. Following
a public outcry, the product was pulled from the market and
banned by the Indian government in June 2015.
  Nestle lost more than Rs 500 crore (US$77 million) over the ban,
which forced it to destroy more than 37,000 tons of Maggi
noodles.

 Nestlé insisted on the safety of its product and contested the

ruling. In August 2015, the Bombay High Court overturned the
government’s ban. In November 2015, Maggi was relaunched
after court-mandated tests. Various Maggi-related cases are still
working their way through other Indian courts.

QUESTIONNAIRE

Q1. Age group of respondent?

 16-20
 21-30
 31-45
 Above 45
Q2. Gender
 Female
 Male
 Others
Q3. Occupation
 A home maker
 A student
 Working professional
 Businessman
Q4. What brand comes to your mind when we say the word noodle?
 Maggi
 Sunfest Yippee
 Knorr
 Ching’s Secret
 Other ____________
Q5. Have you been a regular consumer of Maggi?(before and after ban)
 Yes
 No
Q6. On a scale of 1 to 5 rate Maggi on the following parameters?
(before Ban).

1 (Very 2 3 4 5 (very
poor) (Poor) (Neural) (Good) good)
Taste
Flavor/variety
Hygiene/Purit
y
Availability
Packaging
trust
Healthy
Q7. How often did you consume Maggi before ban?
 Daily
 Once in a week
 Twice a week
 More than twice a week but not daily
 Once a month
 Two to three times a month
 Not once in several months

Q8. How often did you consume Maggi after ban?

 Daily
 Once in a week
 Twice in a week
 More than twice a week but not daily
 Once a month
 Two to three times a month
 Not once in several months
Q9. Do/did you tried any other brand of instant noodles during/after
the ban of Maggi?
 Yes
 No
Q10. Do you consider any other noodle brand as a complete alternative
to Maggi?
 Yes
 No
Q11. On a scale of 1 to 5 rate Maggi on the following parameters?
(after ban).
1 (very 2 3 4 5 (very
poor) (poor) (neutral) (good) good)
Taste
Flavor/variety
Hygiene/purit
y
Availability
Packaging
Trust
Healthy

ANALYSIS OF QUESTIONNAIRE
 We shared the prepared questionnaire through WhatsApp and
other social sites and we received total 73 responses and the
analysis is based on only that responses.
A1.
 Age group of respondant

10%
11%

52%

27%

16-20 21-30 31-45 above 45

 52.1% of the respondent are of 16-20 age group

 27.4% of the respondent are of 21-30 age group
 11% lies under 31-45
 And rest 9.6% are of age group above 45
So by this we get to know that Maggi is mostly consumed by the
teenagers under 16-20 age group this is because all of them are mostly
students and many of them live away from home for the studies and
they find Maggie as a very good way to concur their hunger, and as
expected the minority goes with the elder once as many of them avoid
junk food for the sake of their health.
A2.
 Gender

6%
37%

58%

Female Male others

Conclusion: Through the survey we came to know that Maggi is mostly

occupied by the males i.e. 57.5% and after that 37% were of females
and 5.5% were of others. We know that most of the males don’t want
to spend much of their time in kitchen that is why they consider to eat
Maggi as the quote line says (2-minute instant noodle).
A3.

Occupation
2.7
11

15.1

71.2

A home maker A student working professional businessman

concl
usion: From the survey we found that majority of Maggi consumers are
the student as I told in the first question that they are the one who
mostly Lives away from home and don’t know much to cook food so
they choose Maggi as a quick and tasty food for them. And after them
are the working professional who don’t get enough time to cook
because of their work. Then are the businessman and the home
makers.

A4.

What brand comes to your mind when we say the word noodles?
1.5
5.4
8.2

84.9

MAGGI SUNFEST YIPPEE KNORR OTHER

Conclusion: As expected a majority of 84.9 % of consumers went with

Maggie as their favorite noodle just because of its taste and craze
Maggi has become the most lovable instant noodle in India. 8.4% of
them went with yippee, 5.4% of them with Knorr and 1.5% choose
other.

P.T.O

A5.
 Have you been a regular consumer of Maggi (before and after ban)

35.6

64.4

YES NO

Conclusion: From the results we came to know that a majority of 64.4%

were the regular consumer of Maggi before and after ban. And rest
were maybe the occasionally one or may be the elderly ones who don’t
like Maggi much.
A6.

On a scale of 1-5 rate maggi on following parameters(before ban)

40

30

20

10

0
TASTE FLAVOR/VARIETY HYGINE/PURITY AVAILABILITY PACKAGING TRUST HEALTHY

very poor poor neutral good VERY GOOD

Conclusion: We got good responses by the consumer on the rating of
Maggi on the following given basis before ban (refer to upper column
chart).
 In terms of Taste, a majority of people said that it was very good
and good for them, some of them said that it was neutral and very
less of them went with poor and very poor, so overall we can say
that Maggi in terms of taste is liked by the majority.
 In terms of Flavor/Variety, most of them went with good and
neutral some said it is very good and some of them don’t like it, so
we can say that the flavor/variety of Maggi is good at an extent.
 In terms of Hygiene/Purity, majority was with neutral and good
but some of them said that it was very good and the minority
goes with poor and very poor.
 In terms of Availability, the majority was with very good this is
because we all know that Maggi is available on every shop as it is
very common and instant fast food so we can get it in every small
shop. In the chart we can see that no one voted for very poor and
some went with good and neutral.
 In terms of Packaging, the majority went with very good as we all
know Maggi come in a very attractive pack of yellow color, the
content on the pack is very much attractive and the picture is also
very good here is the sample picture of the pack,
  At last was the Trust and Health we can see most of them went
for good and for health majority of them went for neutral that
was because we know after all Maggi is also a junk food and
excess of it is also not good for health.

A7.

How often did you consume maggi before ban?

4.2
11

Daily
21.9 Once in a week
13.7 Twice a week
more than twice a week but not
daily
once in a month
2-3 times a month
not once in several months

16.4
16.4

16.4

Conclusion: The data tells that only 4.2% of the respondents eat Maggi
on a daily basis but we found that the majority is eating Maggi once a
week, and surprisingly twice a week, more than twice a week and once
in a month got equal weightage on the pie chart. But there are some
people who do not eat Maggi once in several months. Thus it’s clear
that Maggi was having a very good image and lovers all over India
before ban.

P.T.O
A8.

How often did you consume maggi after ban?

20.5 17.8

Daily
Once in a week
Twice a week
more than twice a week but not
daily
16.4 once in a month
2-3 times a month
19.2 not once in several months

6.8

19.2

Conclusion: This is the result of consumers after the ban of Maggi, here
we can see that the consumers who used to eat Maggie daily before
ban that was 4.2% (comparing to upper pie chart) have vanished. it is
clear that the consumer took that ban seriously and avoided Maggi. The
consumer who were eating Maggi once in a before ban were 21.9% and
after ban it decreased to 17.8%, after that if we see then it is clear that
many of the consumers stopped eating Maggi after the ban as there
was a huge increase in the not once in several months’ column (before
ban it was 11% and after ban it increased to 20.5%). Thus it is clear that
after the ban of Maggi many consumers took a break from it and many
of them decreased the consumption.

P.T.O
A9.

Did you tried any other brand of instant noodles during/after the ban of
Maggi

30.1

69.9

YES NO

Conclusion: From the chart we can see that that a majority of Maggi
consumer opted to other brands because of ban of Maggi in India as
they felt that Maggi at that time was not good for the health, 69.9% of
the consumer tried other brands of instant noodle while the rest of
them remained on Maggi.
A10.

Do you consider and other brand as a complete alternative to maggi

28.2

71.8

YES NO
Conclusion: By the responses (from the above pie chart) we came to
know that most of them found a complete alternative during the ban
while majority of consumer said that there is no competition or
alternative to Maggi as they continued to consume it after the ban on
the trust of the brand name Maggi.

A11.

On a scale of 1-5 rate maggi on following parameters(after ban)

30

20

10

0
TASTE FLAVOR/VARIETYHYGINE/PURITY AVAILABILITY PACKAGING TRUST HEALTHY

very poor poor neutral good VERY GOOD

Conclusion: From the above column chart we can see that after the ban when
Maggi re-entered the market the consumer the consumer were happy with the
taste it was good for them, they were happy with its flavor it is stated as good by
them, after the ban they gave neutral and good comments to the hygiene of
Maggi, then when it came for the availability at some places it was not available
because after ban all the unit of Maggi was disposed and its understood that the
company took some time to manufacture a huge unit of Maggi again. That’s why
at some places it was not available for some time after ban but afterwards
sufficient units were available for the consumer, packaging got no changes except
the change in the amount of MSG (the taste enhancer) which was found in
dangerous amount, after that also there was some trust issue with Maggi but who
can stop one who loves Maggi and have no trust issue with it.
END OF REPORT…
 CONCLUSION

The food safety and standards authority of India (FSSAI) claimed that
Maggi noodles were found to be unsafe and hazardous for human
consumption. The food standard also stopped further production,
processing, import, distribution and sale of the product with immediate
effect for some time.
 From my study I would like to conclude that Nestle India has been
working in India form more than 100 years and by each day it is
growing drastically and the time is not far when it may become
the biggest FMCG company of India.
 Despite of many controversy and ban on Maggi, Nestle India tried
to get into the market by re-evaluating its product at a very fast
speed and is once again able to regain trusts of its customers.
 Nestle India has always worked first for their customer by
providing them quality product and by maintaining the trust their
customer have in them, and that’s the reason why more and more
people have been associated to nestle and is growing every day.
 After the ban many consumers avoided to eat Maggi but they
trusted the brand and they waited for the new product to enter
the market after the ban, and so does the company, the new
product was delivered to the markets with all correction and the
consumers started it again.

THANK YOU
 BIBLOGRAPHY/REFRENCES

 Google

 Wikipedia

 The India times

 FSSAI

 The times of India

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