Market Research Report

PUNE INSTITUTE OF
BUSINESS MANAGEMENT
THE CUSTOMER PERCEPTION TOWARDS NESTLE MAGGI
PRESENTED BY:
AKSHAT CHAUHAN
DIPTI KUMARI
HRITWAJ KULSHRESHTHA
KHUSHBOO SINGH
DECLARATION
This is to certify that the material embodied in this study is entitled “The
Customer Perception Towards Maggi” is based on team research work and our
indebtedness to other work/publication has been acknowledge at the relevant
place.
It has no commercial implication and is done only for academic purpose.
(Team Members)
ACKNOWLEDGEMENT
We take this opportunity to express a deep sense of gratitude to Mr. Raman

Preet Singh, Director, Pune Institute of Business Management, for his cordial
support as he gave the permission to use all required equipment and necessary
material to complete the project.
We take this opportunity to express our profound gratitude and deep regard to
our mentor Dr. Nilesh Kate, professor, Pune Institute of Business Management
for his exemplary guidance, monitoring and constant encouragement throughout
this project. The blessing, help and guidance given by his time to time shall carry
us a long journey of life on which we are about to embark.
Table of Contents
ABSTRACT............................................................................................................................................5
INTRODUCTION:..................................................................................................................................5
BACKGROUND......................................................................................................................................5
MAGGI NOODLES IN INDIAN MARKET...............................................................................................6
OBJECTIVE OF THE STUDY.................................................................................................................6
RESEARCH VARAIBLES.......................................................................................................................6
RESEARCH GAP....................................................................................................................................7
RESEARCH DESIGN..............................................................................................................................7
DATA ANALYSIS AND INTERPRETATION..........................................................................................8
FINDINGS............................................................................................................................................20
LIMITATIONS.....................................................................................................................................21
CONCLUSION......................................................................................................................................21
ABSTRACT
Consumer behaviour refers to the behaviour that consumers display in searching
for purchasing, using, evaluating and disposing of products and services that they
expect, will satisfy their need. Consumers are highly complex individuals subject
to a variety of psychological and sociological needs apart from their survival
needs. Needs and priorities of different consumer segments differ drastically.
This study analyses the brand preference of Nestle Maggi noodles by consumers.
The study evaluates the quality of nestle Maggi noodles availed by consumers,
the media influences in consumption, the effect of the pricing policy in customer
satisfaction. This study attempts to measure customer satisfaction as well as
contributing to the commercial efficiency by the way of suggestions to improve
its profitability in a long-term business.
INTRODUCTION:
Quick food styles are catching up fast because of a greater number of working
couples, domestic fuel crisis, non-availability of reliable domestic servants and
breaking up of joint family system. Neither time nor patience to prepare the
ingredients and wholesome food in the house itself, the high price of ingredients
and ready mix are also a significant factor responsible for the spectacular
increase in the demand for Maggi noodles products.
BACKGROUND
launched maggi “2 minute noodles”, an instant food product in 1982. At

that time, Indian consumers were rather conservative in their food habits,
preferring to eat traditional Indian
Nestle India Limited (NIL) introduced the Maggi brand to Indian when it
consumers dishes rather than canned or packaged food. In fact, NIL was trying to
create entirely new food category instant noodles in India. Initially, the company
targeted working women on the premise that maggi noodles were fast to cook
and hence offered convenience.
However, this approach failed as was evident from the fact that the sales of maggi
noodles were not picking up despite heavy media advertising. To get to the root
of the problem, NIL conducted a research, which revealed that it was children
who liked the taste of maggi noodles and who were the largest consumers of the
product. After this, NIL shifted its focus from working women and targeted
children and their mothers through its marketing. NIL's promotions
positioned the noodles as a 'convenience product', for mothers and as a 'fun'
product for children.
The noodles’ tagline, “Fast to Cook Good to Eat” was also in keeping with this
positioning. NIL aggressively promoted maggi noodles through several schemes
like distributing free samples,
giving gifts on the return of empty packs, etc. NIL's advertising too played a great
role in communicating the benefits of the product to target consumers.
MAGGI NOODLES IN INDIAN MARKET:
It is a far cry from the initial launch days when maggi was distributed free in
schools to promote trial; in 1980s during the launch period. The company made
an attempt in the mid-90s to change the formulation of the product, which was
outright rejected by the consumers and the company had to go back to it old
formulation and the company had to do a massive communication campaign.
Today India is the largest market for maggi noodles. But the brand has turned
profitable just recently, so it has been a long haul for the company in the Indian
market. The journey and success of maggi noodles is something worth noticing
for a marketer, as one can learn a lot, the ignored reality that brand building is a
long-term business.
OBJECTIVE OF THE STUDY

1. To know consumer’s perception towards maggi 2-minute noodles.
2. To find out level of satisfaction of the consumer towards maggi 2-minute
noodles.
3. To know about various factors that affects the behaviour of customer.
4. To know the consumers perception regarding the Heath issues due to the
consumption of maggi noodles.
5. To understand the image of maggi noodles as a brand on consumer
mindset.
RESEARCH HYPOTHESIS
Null Hypothesis(H0): There is no significant relationship between Health of

consumer and purchase decision of Maggi.
Alternative Hypothesis(H1): There is a significant relationship between Health of

consumer and purchase decision of Maggi.
RESEARCH VARAIBLES
INDEPENDENT VARIABLE DEPENDENT VARIABLE
Health of Consumers Purchase Decision of Maggi
RESEARCH GAP
1. The present study is the first of its kind in India to determine the
perception of the consumers towards a particular brand and Its impact on
the Health of Customers.
2. The studies done not only focused on a particular brand but the motive of
this Study is to understand the quality aspects of different brands also.
3. In this study we not only focus on a particular factor that is health but we
also understand various factors in regards to Maggi that affects the
behaviour of a consumer.
4. This Study also focus on the current news related to Nestle that most of
the products are not fit or not healthy for human consumption.
RESEARCH DESIGN
∞ RESEARCH TYPE-
The research is on descriptive basis.
∞ SAMPLE AREA-
The sample region chosen was Bareilly, Delhi, Noida.
∞ SAMPLE SIZE
91
∞ DATA COLLECTED-
Researcher had collected Primary Data as well as Secondary Data.
∞ SAMPLING METHOD-
Researcher opted convenience sampling. Convenience sampling is a
non-probability sampling technique where subjects are selected
because of their convenient accessibility and proximity to the
researcher.
∞ METHOD OF DATA COLLECTION- The researcher had collected the

data through well-structured questionnaire and personal interview, and
the questionnaire was close ended.
DATA ANALYSIS AND INTERPRETATION
Q1. Gender of the Applicant.
Gender
60
50
Total
40
30
20
10
0
Female Male
INTERPRETATION- 1
Researcher depicted that from above chart, out of 100%(n=91) respondents, n=52 is
Male and n=39 is Female.
Q2. Age Of the Applicant
Age
60
50
40
Total
30
20
10
0
15-25 26 -35 36-45 46-65 above 65 Below 15
INTERPRETATION- 2
Researcher depicted that from above chart, out of 100%(n=91) respondents, n=52 falls
under 15-25, n=22 falls under 26-35, n=8 falls under 36-45, n=4 falls under 46-65, n=1
is above 65 and n=4, are below 15.
Q3. Income of the Applicant.
Income
40
35
30
25 Total
20
15
10
0
<10,000 >50,001 10,001-20,000 20,001-30,000 30,001-40,000 40,001-50,000
INTERPRETATION- 3
Researcher depicted that from above chart, out of 100%(n=91) respondents, n=37
having an income of less than 10000, n=20 falls under 10001-20000, n=12 falls under
20001-30000, n=11 falls under 30001-40000 and n=8, falls under 40001-50000.
Q4. Consumption Habit.
Consumption
30
25
20
Total
15
10
0
Everyday Not prefer Once a Once a Six Once a Thrice a Twice a
to eat month month week week week
INTERPRETATION- 4
Researcher depicted that from above chart, out of 100%(n=91) respondents, n=5 use to
consume maggi every day, n=15 use to consume once a month, n=6 use to consume
once a six-month, n=23 use to consume once a week, n=11 use to consume thrice a week
and n=27 use to consume twice a week.
Q7. New Variants
New Variants
60
50
Total
40
30
20
10
0
No Yes
INTERPRETATION- 7
Researcher depicted that from above chart, out of 100%(n=91) respondents, n=59 tried
the new variants of Nestle Maggi and n=32 not yet tried the new variants.
Q10. Pricing of Nestle Maggi.
Pricing
60
50
40 Total
30
20
10
0
Over Priced Perfect Price Under Priced
INTERPRETATION- 10
Researcher depicted that from above chart, out of 100%(n=91) respondents, n=58
thinks that Maggi is perfectly Priced and n=8 thinks that Maggi is Over Priced.
Q11. Side Effects.
Side Effects
50
45
40
Total
35
30
25
20
15
10
5
0
No Yes
INTERPRETATION- 11
Researcher depicted that from above chart, out of 100%(n=91) respondents, n=50 have
no side effects on their Body and n=41 face some side effects on their body.
Q12. A. Quality of Patanjali.
Patanjali Quality Ratings
30
25
20
Total
15
10
0
1 2 3 4 5
INTERPRETATION- 12.A.
Researcher depicted that from above chart, out of 100%(n=91) respondents, n=30 rate
Patanjali Quality as 1, n=23 rate it 2, n=12 rate it 3, n=9 rate it 4 and n=17 rate quality as
5.
Q12.B. Quality of Yippie.
Yippie Quality Ratings
35
30
25
Total
20
15
10
0
1 2 3 4 5
INTERPRETATION- 12.B.
Yippie Quality as 1, n=23 rate it 2, n=35 rate it 3, n=10 rate it 4 and n=14 rate quality as
5.
Q12. C. Quality of Wai Wai.
Wai Wai Quality Ratings
30
25
20
Total
15
10
0
1 2 3 4 5
INTERPRETATION- 12.C.
Yippie Quality as 1, n=22 rate it 2, n=28 rate it 3, n=14 rate it 4 and n=7 rate quality as 5.
Q.12. D. Quality of Ching’s.
Chings Quality Ratings
100
90
80
70
60 Total
50
40
30
20
10
0
1 2 3 4 5
INTERPRETATION- 12.D.
5.
Q.12. E. Quality of Koka.
Koka Quality Ratings
40
35
30
25 Total
20
15
10
0
1 2 3 4 5
INTERPRETATION- 12.E.
5.
Q12. F. Quality of Knorr.
Knorr Quality Ratings
35
30
25
Total
20
15
10
0
1 2 3 4 5
INTERPRETATION- 12.F.
Q12. G. Quality of Top Ramen.
Top Ramen Quality Ratings
30
25
20
Total
15
10
0
1 2 3 4 5
INTERPRETATION- 12.G.
Factor analysis is a method of data reduction. It does this by seeking underlying
unobservable variables that are reflected in the observed variables. Factor
analysis is a technique that requires a large sample size. Factor analysis is based
on the correlation matrix of the variables involved, and correlations usually need
a large sample size before they stabilize.
KMO AND BARTLETT'S TEST

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .828
Approx. Chi-Square 407.431
Bartlett's Test of Sphericity df 45
Sig. .000
Kaiser-Meyer-Olkin Measure of Sampling Adequacy – This measure varies

between 0 and 1, and values closer to 1 are better. A value of .6 is a suggested
minimum.
Bartlett’s Test of Sphericity – This test the null hypothesis that the correlation
matrix is an identity matrix. An identity matrix is matrix in which all of the
diagonal elements are 1 and all off diagonal elements are 0.
ROTATED COMPONENT MATRIX

Component
1 2 3
Media Advertisement -.068 .393 .733
Price .413 -.087 .786
Quality .810 .012 .276
Taste Preference .881 .009 .143
Availability .864 .113 .065
Packaging .676 .343 .106
Word of Mouth Branding .472 .388 .421
Social Factors .471 .660 -.047
Personal Preference .662 .503 .006
Instant Food -.046 .780 .275
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 14 iterations.
Rotated Factor Matrix – This table contains the rotated factor loadings, which
represent both how the variables are weighted for each factor but also the
correlation between the variables and the factor. Because these are correlations,
possible values range from -1 to +1.
INITIAL EIGENVALUES
Component Total % Of Variance Cumulative %
1 4.563 45.631 45.631
2 1.389 13.891 59.522
3 1.003 10.030 69.552
FACTORS AND THEIR ATTRIBUTES

FACTOR 1 FACTOR 2 FACTOR 3
Quality Instant Food Media Advertisement
Taste Preference Price
Availability
FACTOR LABELLING
Factor Name Attributes 1 Attributes 2 Attributes 3
Peculiarity Quality Taste Preference Availability
Awareness Media Price
Advertisement
Instant Instant Food
Comparison of Factors through attribute-based Mapping:
ATTRIBUTES PECULIARITY AWARENESS

Quality 0.81 0.012
Taste Preference 0.881 0.009
Availability 0.864 0.113
Instant Food -0.046 0.78
PECULIARITY VS AWARENESS
0.9
0.78
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.11
0.1
0.01 0.01
0
-0.2 0 0.2 0.4 0.6 0.8 1
ATTRIBUTES AWARENESS INSTANT

Media Advertisement -0.068 0.733
Price 0.413 0.786
Quality 0.81 0.276
Taste Preference 0.881 0.143
Availability 0.864 0.065
AWARENESS VS INSTANT
0.9
0.79
0.73 0.8
0.7
0.6
0.5
0.4
0.28
0.3
0.2 0.14
0.1 0.07
0
-0.2 0 0.2 0.4 0.6 0.8 1
ATTRIBUTES INSTANT AWARENESS

Media Advertisement 0.393 0.733
Price -0.087 0.786
Instant Food 0.78 0.275
INSTANT VS AWARENESS
0.9
0.79
0.8 0.73
0.7
0.6
0.5
0.4
0.28
0.3
0.2
0.1
0
-0.2 0 0.2 0.4 0.6 0.8 1
After performing Factor analysis on the data collected, 3 factors were identified
which cumulatively represented of the total variance. These factors are labelled
as Peculiarity, Awareness and Instant
T-TEST
In a One Sample t Test, the test variable's mean is compared against a "test
value", which is a known or hypothesized value of the mean in the
population. Test values may come from a literature review, a trusted
research organization, legal requirements, or industry standards
ONE-SAMPLE STATISTICS
N Mean Std. Deviation Std. Error Mean
91 3.11 1.386 .145

Health
The first section, One-Sample Statistics, provides basic information about the

selected variable, including the valid (nonmissing) sample size (n), mean,
standard deviation, and standard error.
ONE-SAMPLE TEST
Test Value = 0
t df Sig. (2- Mean 95% Confidence Interval
tailed) Difference of the Difference
Lower Upper
Healt 21.404 90 .000 3.110 2.82 3.40
h
1. Test Value: The number we entered as the test value in the One-Sample T
Test window.
2. t Statistic: The test statistic of the one-sample t test, denoted t.
3. df: The degrees of freedom for the test.
4. Sig. (2-tailed): The two-tailed p-value corresponding to the test statistic.
5. Mean Difference: The difference between the "observed" sample mean (from
the One Sample Statistics box) and the "expected" mean (the specified test
value (A)). The sign of the mean difference corresponds to the sign of
the t value (B).
It is Observed from the test that P value is 0.000 and it is less than 0.05 and hence
it can be concluded that Null Hypothesis is rejected and Alternative Hypothesis is
Accepted.
FINDINGS
1. Researcher depicted that from above chart, out of 100%(n=91) respondents, n=52 is
Male and n=39 is Female.
2. Researcher depicted that from above chart, out of 100%(n=91) respondents, n=52
falls under 15-25, n=22 falls under 26-35, n=8 falls under 36-45, n=4 falls under 46-
65, n=1 is above 65 and n=4, are below 15.
having an income of less than 10000, n=20 falls under 10001-20000, n=12 falls
under 20001-30000, n=11 falls under 30001-40000 and n=8, falls under 40001-
50000
use to consume maggi every day, n=15 use to consume once a month, n=6 use to
consume once a six-month, n=23 use to consume once a week, n=11 use to consume
thrice a week and n=27 use to consume twice a week.
tried the new variants of Nestle Maggi and n=32 not yet tried the new variants.
thinks that Maggi is perfectly Priced and n=8 thinks that Maggi is Over Priced.
have no side effects on their Body and n=41 face some side effects on their body.
rate Patanjali Quality as 1, n=23 rate it 2, n=12 rate it 3, n=9 rate it 4 and n=17 rate
quality as 5.
rate Yippie Quality as 1, n=23 rate it 2, n=35 rate it 3, n=10 rate it 4 and n=14 rate
quality as 5.
quality as 5.
quality as 5.
quality as 5.
quality as 5.
quality as 5.
15. After performing Factor analysis on the data collected, 3 factors were
identified which cumulatively represented of the total variance. These factors
are labelled as Peculiarity, Awareness and Instant.
16.There is a significant relationship between Health of consumer and purchase
decision of Maggi.
LIMITATIONS
The sample size is small and the study is restricted to Delhi, Bareilly and Noida
residents only. Further research can be done by increasing the sample size and
undertaking a countrywide study. Moreover, consumer perception and buying
behaviour can be analysed.
CONCLUSION
As we know that the food processing business in India is at a nascent stage.
Currently, only about 10% of the output is processed and consumed in packaged
form thus highlighting huge potential for expansion and growth.
Traditionally, Indians believe in consuming fresh stuff rather than packaged or

frozen, but the trend is changing and the new fast-food generation is slowly
changing. Riding on the success of noodles, Nestle India, tried to make extensions
of the Maggi brand to a number of products like, sauces, ketchups., etc.
So, although the time is changing but one must not only focus on the taste but
also on other things such as whether the food that we are consuming is good for
our health or not.
So, as a market leader in the Noodles segment maggi must not only focus on taste
but it must also provide packaged food that is healthy and fit for human
consumption.

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PUNE INSTITUTE OF

It has no commercial implication and is done only for academic purpose.

We take this opportunity to express a deep sense of gratitude to Mr. Raman

launched maggi “2 minute noodles”, an instant food product in 1982. At

OBJECTIVE OF THE STUDY

Null Hypothesis(H0): There is no significant relationship between Health of

Alternative Hypothesis(H1): There is a significant relationship between Health of

∞ METHOD OF DATA COLLECTION- The researcher had collected the

Q10. Pricing of Nestle Maggi.

Q12. A. Quality of Patanjali.

Patanjali Quality Ratings

Yippie Quality Ratings

Q12. C. Quality of Wai Wai.

Wai Wai Quality Ratings

Chings Quality Ratings

Q.12. E. Quality of Koka.

Koka Quality Ratings

Knorr Quality Ratings

Q12. G. Quality of Top Ramen.

Top Ramen Quality Ratings

KMO AND BARTLETT'S TEST

Kaiser-Meyer-Olkin Measure of Sampling Adequacy – This measure varies

ROTATED COMPONENT MATRIX

FACTORS AND THEIR ATTRIBUTES

Quality Instant Food Media Advertisement

Taste Preference Price

Comparison of Factors through attribute-based Mapping:

ATTRIBUTES PECULIARITY AWARENESS

ATTRIBUTES AWARENESS INSTANT

ATTRIBUTES INSTANT AWARENESS

91 3.11 1.386 .145

The first section, One-Sample Statistics, provides basic information about the

Traditionally, Indians believe in consuming fresh stuff rather than packaged or

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