Professional Documents
Culture Documents
AND
SATISFACTION
ON
INSTANT NOODLES
- “NESTLE ” – IN INDIA
. REGISTRATION NUMBER-
ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for
MAGGI INSTANT NOODLES - “NESTLE INDIA LTD”. It has
been a valuable experience for me to undergo research work for
MAGGI INSTANT NOODLES. This would not have been possible
without the support of the people around. As a student of SHRI
SHIKSHAYATAN COLLEGE I would like to thank all those who
helped me and supported me during my project.
Last but not the least I would like to thank MISS JOYITA
SENGUPTA for the added guidance and help. I am also grateful to my
parents and friends for the immense support and encouragement.
TABLE OF CONTENT
NUMBER TITLE PAGE
NO.
1. INTRODUCTION
1.1)BACKGROUND
1.2)REVIEW OF LITERATURE
1.3)OBJECTIVES OF THE STUDY
1.4)RESEARCH METHODOLOGY
1.6)PLAN OF STUDY
2. CONCEPTUAL FRAMEWORK
2.1)COMPANY PROFILE
2.2)MARKETING STRATEGY
3. ANALYSIS AND FINDINGS
3.1)GRAPHICAL ANALYSIS
3.2)SWOT ANALYSIS
4. CONCLUSIONS AND RECOMMENDATIONS
4.1)CONCLUSIONS
4.2)RECOMMENDATIONS
5. REFERENCES
6. ANNEXURES
6.1)QUESTIONNAIRE
INTRODUCTION
1.1. BACKGROUND
In today’s world customer behavior and customer satisfaction play a major role in
the decision making of the brands about various products and services. Based on
the demand of a particular product and customers preferences various companies
make or decide their selling patterns and other marketing strategies like price
decisions and advertisements. To see how consumer preferences vary and how it
affects the companies I chose to do a survey on “CONSUMER BEHAVIOUR
AND SATISFACTION OF MAGGI NOODLES- NESTLE IN INDIA”
The term consumer behavior refers to the behavior that consumers display in
searching for purchasing, using, evaluating and disposing of products and services
that they expect, will satisfy their need. Consumers are highly complex individuals
subject to a variety of psychological and sociological needs apart from their
survival needs. Needs and priorities of different consumer segments differ
drastically. In this competitive era, a large number of noodles brands are available
to consumers and the study examines how they prefer to buy from the quantum.
3) Jain. A, ( 2012) studied that, the brand awareness in rural areas particularly in
respect of beauty care and health care products is showing an increasing tendency.
Most of the people both from illiterate & literate groups prefer branded products
with the belief that quality is assured as the manufacturers are reputed companies.
For Ex: Colgate Tooth Paste, Head & Shoulder shampoo. People are not worried
about the price of the product. They are showing willingness to spend higher price
when they realize that they can afford to spend. Since the usage of branded
products of reputed companies will elevate their status as well as importance in
that village. This change in the attitude to spend more on the highly priced branded
products (Example: Dove Soap, Gorniour Hair Oil) among high income groups in
rural areas clearly suggests that there is an ample scope for such products to
capture the markets in this areas by increasing the supply of these products.
4) Bryant et al. (1996) conducted a study on 400 companies using the American
Customer Satisfaction Index (ACSI) and demonstrated that there is significant
relationship and consistent differences in the levels of satisfaction among
demographic groups: Sex – positively related to satisfaction and female customers
are more satisfied than the male customers. Female of all ages are more satisfied
than the male. Women are more involved with the process of purchase and
possibly use the mobile phone more for relational purposes (social network device)
while men use it for functional purposes (businesses, sales, etc). Age – positively
related to satisfaction but the relationship is not a straight line. Satisfaction
increases with age. The major increase in satisfaction is seen within the age 55 and
over. Income – the higher the income, the lower the satisfaction level. Location
(type of area) – positively related to satisfaction.
TYPES OF DATA:
There are two types of data:
1. SAMPLE SIZE: 50
2. SAMPLE UNIT: Consumers of instant food products.
It contains the company’s profile i.e. details about the topic concerned “maggi”
and the company which owns the maggi brand – “NESTLE”. The company profile
mentions in details the history of NESTLE as well as MAGGI and their current
market positions. The marketing strategies of maggi and the variety of instant
noodles offered have been mentioned along with their prices.
CHAPTER 3:
This contains the analysis of the questions asked in the survey and their
diagrammatic representation. It also contains a SWOT analysis of the maggi brand
which mentions the strengths, weaknesses, opportunities and threats to the brand.
CHAPTER 4:
CHAPTER 5:
In this chapter all the sites which have been visited and the sources of the journals
of the information has been mentioned.
CHAPTER 6:
This contains a copy of the questionnaire which has been used to conduct the
survey
2. CONCEPTUAL FRAMEWORK
The Company insists on honesty, integrity and fairness in all aspects of its business and expects
the same in its relationships. This has earned it the trust and respect of every strata of society that
it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and
amongst the 'Top Wealth Creators of India’.
HISTORY:
Nestle was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first
product was “Farine Lactee Nestle”, an infant cereal specially formulated by Henri Nestlé to
provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss
Condensed Milk Company in 1905, Nestlé has grown to become the world’s largest and most
diversified food Company, and is about twice the size of its nearest competitor in the food and
beverages sector.
Nestlé’s trademark of birds in a nest, derived from Henri Nestlé’s personal coat of arms, evokes
the values upon which he founded his Company. Namely, the values of security, maternity and
affection, nature and nourishment, family and tradition. Today, it is not only the central element
of Nestle’s corporate identity but serves to define the Company’s products, responsibilities,
business practices, ethics and goals. Nestle’s relationship with India dates back to 1912, when it
began trading as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited,
importing and selling finished products in the Indian market.
After India’s independence in 1947, the economic policies of the Indian Government emphasized
the need for local production. Nestlé responded to India’s aspirations by forming a company in
India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestlé
to develop the milk economy. Progress in Moga required the introduction of Nestlé’s
Agricultural Services to educate advice and help the farmer in a variety of aspects. From
increasing the milk yield of their cows through improved dairy farming methods, to irrigation,
scientific crop management practices and helping with the procurement of bank loans. Nestlé set
up milk collection centre’s that would not only ensure prompt collection and pay fair prices, but
also instill amongst the community, a confidence in the dairy business. Progress involved the
creation of prosperity on an on-going and sustainable basis that has resulted in not just the
transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of
industrial activity, as well.
MAGGI:
Maggi noodles is a brand of instant noodles manufactured by Nestle. 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.
HISTORY:
The original company came into existence in 1872 in Switzerland, when Julius Maggi took over
his father’s mill. At that time during industrial revolution in Switzerland created factory jobs for
women, who were therefore left with very little time to prepare meals.
Due to this growing problem Swiss Public Welfare Society asked Julius Maggi to create a
vegetable food product that would be quick to prepare and easy to digest.
It was the first to bring protein rich legume meal to the market, which was followed by
readymade soup based on legume meal in 1886.
In 1863, Julius Maggi developed a formula to add taste to meals, which later paved the way for
Maggi and other easy to make food products. Apart from two minute noodles Maggi also offers a
range of product
However in India it was launched in 1980s by Nestle group of companies. Maggie had merged
with Nestle family in 1947.
Nestle India Limited (NIL) introduced the maggi brand to Indian consumers when it launched
maggi “2 minute noodles”, an instant food product in 1982. At that time, Indian consumers were
rather conservative in their food habits, preferring to eat traditional Indian dishes rather than
canned or packaged food. In fact, NIL was trying to create entirely new food category instant
noodles in India. Initially, the company targeted working women on the premise that maggi
noodles were fast to cook and hence offered convenience. However, this approach failed as was
evident from the fact that the sales of maggi noodles were not picking up despite heavy media
advertising. To get to the root of the problem, NIL conducted a research, which revealed that it
was children who liked the taste of maggi noodles and who were the largest consumers of the
product. After this, NIL shifted its focus from working women and targeted children and their
mothers through its marketing. NIL's promotions positioned the noodles as a 'convenience
product', for mothers and as a 'fun' product for children. The noodles’ tagline, “Fast to Cook
Good to Eat” was also in keeping with this positioning. NIL aggressively promoted maggi
noodles through several schemes like distributing free samples, giving gifts on the return of
empty packs, etc. NIL's advertising too played a great role in communicating the benefits of the
product to target consumers.
In 1980’s 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.
PRICE OF MAGGI:
Price of the company’s product is considered as one of the 4p’s of marketing. It is the most
important aspect for any company in terms of decision making as it directly affects the sales and
profit of the company. These are the prices which are set by the company for the different
flavours of MAGGI noodles:
Maggie has faced lot of hurdles in its journey in India…. The basic problem the brand faced was
the Indian psyche ie. Indians used to be conservative about the food habits so noodles faced a lot
of problem in promoting sales.
Initially nestle tried to position the Noodles in the platform of convenience targeting the working
women. However, the sales of Maggi was not picking up despite of heavy Media Advertising. To
overcome this 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. So they came up with
Maggi- 2 minute noodles with price of Rs. 2.10 with a close of 100% margin. 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. They promoted the product by:
For this project the answers to the questions of the survey conducted have been
represented using pie charts and bar graphs.
Following are the questions along with the answers asked in the survey conducted:
YES 43
NO 7
YES
NO
ANALYSIS: The survey showed that 43 out of 50 customers surveyed are consumers of maggi.
Maggi is a famous with different types of consumers in the market.
YES 30
NO 20
YES
NO
ANALYSIS: This shows that maximum people perceive magi as a healthy product while at the
same time a lot of people think it is not a healthy product. The ratio here is 3:2.
NEWSPAPER 2
ADVERTISEMENT 44
FRIENDS 4
RADIO 0
RADIO
FRIENDS
Series1
ADVERTISEMENT
NEWSPAPER
0 5 101520253035404550
ANALYSIS: This shows that maximum people get to know about maggi through the brands
advertisement. Maggi is famous for its catchy and interesting advertisements which help them
attract more consumers.44 out of the 50 people surveyed came to know about maggi from
advertisements.
Q.4. DO YOU RECALL ANY OF THE T.V. ADVERTISEMENTS OF MAGGI?
YES 45
NO 5
YES
NO
ANALYSIS: As mentioned above maggi advertisements are really consumer attracting and
hence 90 percent of the people tend to remember the advertisements.
Q.5. WHAT COMES TO YOU MIND WHEN YOU HEAR THE WORD ‘MAGGI’?
NOODLES 40
FAST FOOD 3
SNACKS 7
NONE OF THESE 0
NONE OF
THESE
SNACKS
NOODLES
0 5 10 15 20 25 30 35 40 45
ANALYSIS: This shows that people are more familiar with maggi as a brand for noodles.40 out
of 50 people surveyed answered that they associate maggi with noodles.
Q.6. WHICH IS THE BRAND THAT COMES TO YOUR MIND WHEN YOU HEAR
THE WORD ‘NOODLES’?
MAGGI 39
TOP RAMEN 4
WAI WAI 6
YIPEE 1
Chart Title
YIPEE
WAI WAI
TOP RAMEN
MAGGI
0 5 10 15 20 25 30 35 40 45
Series1
ANALYSIS: It shows that maggi is the most famous brand in terms of noodles.39 out of 50
consumers prefer maggi noodles over other brands of noodles. Only a few of those have been
surveyed prefer other brands like wai wai, yippee and top ramen over maggi.
Q.7. HOW DO YOU PERCEIVE MAGGI PRODUCTS?
GOOD FOR 10
HEALTH
READY TO EAT 25
JUNK FOOD 2
TASTY/FUN 13
EATING
TASTY/FUN EATING
JUNK FOOD
0 4 8 12 16
ANALYSIS: This shows that maximum people prefer maggi as it is ready to eat and is tasty and
easy to make.
MAGGI MASALA 39
MAGGI ATTA 5
NOODLES
MAGGI MASALA
0 10 20 30 40 50
ANALYSIS: This shows that the most popular among the maggi noodles is the maggi masala
which is purchases by maximum consumers i.e. has the maximum demand among all the others
varieties available in the market.
CHOCOLATES 41
POTATO CHIPS 8
JUICES 1
JUICES
POTATO CHIPS
Series1
CHOCOLATES
0 10 20 30 40 50
ANALYSIS: This shows that maximum consumers of maggi want maggi to consider chocolates
in the future.41 consumers suggest that.
TASTE 13
VARIETY/FLAVOURS 8
HYGIENE/PURITY 6
AVAILABILITY 13
PACKAGING 6
PACKAGING
AVAILABILITY
HYGIENE/PURITY
Series1
VARIETY/FLAVOURS
TASTE
0 4 8 12
ANALYSIS: This bar graph shows very little variations. From this we may conclude that
consumers of maggi have rated its qualities almost equally. Here maximum people think that the
taste and availability is the number one quality of maggi noodles.
Q.11. ARE YOU HAPPY WITH THE CURRENT PRICES AND SIZE VARIANTS OF
MAGGI PRODUCTS?
YES 49
NO 1
YES
NO
ANALYSIS: This shows that almost all consumers of maggi are satisfied and happy with the
current price of maggi noodles and their different varieties and their sizes offered.
STRENGTHS:
4. Market leader.
5. Pioneer and leader so first moving advantage in Noodles, Ketchup, Sauce and Soup market.
8. Distribution channels.
WEAKNESS:
1. Generic Brand to noodle in India.
OPPORTUNITIES:
THREATS:
1. Competitors with long history in product category internationally like, Heinz sauce and
ketchups of Heinz Indian, Top Ramen in Noodle and Knorr Soups.
2. Single product focused competitors like Heinz and Wai Wai noodles.
3. Less entry barriers in the market segment for the product category.
6. Competitive pricing.
4.2. RECCOMENDATIONS:
1. MAGGI should introduce new product line by utilizing the existing brand image which may
help to satisfy the expectations of new variety seekers.
3. They should reach out to the rural markets that would help them get more consumers.
4. Maintain the quality to always be in the number one position in the instant noodles market.
5. Young children play the part of the major in purchase decision of maggi noodles. For
attracting those advertisements may be focused on the want, needs and pleasure of children.
5. REFERENCES
This project contains information gathered from the survey conducted with the
help of questionnaires and further information has been collected from the journals
and other papers available on the internet from the following sites:
1. enwikipedia.org/wiki/nestle’ (13.12.2013)
2. noodlesblogspot.in/2009/OF/history of maggi-noodles-html
3. enwikipedia.org./wiki/maggi-noodles
4. https://www.google.co.in/search=logo+of+maggi+noodles&source
5. http://www.saarj.com
6. http://companies-profiles.blogspot.in/2009/08/nestle-india.html
6. ANNEXURES
6.1. QUESTIONNAIRE:
1) YES 2) NO
1) YES 2) NO
1) NEWSPAPER 2) ADVERTISEMENT
3) FRIENDS 4) RADIO
1) YES 2) NO
Q.5. WHAT COMES TO YOU MIND WHEN YOU HEAR THE WORD ‘MAGGI’?
Q.6. WHICH IS THE BRAND THAT COMES TO YOUR MIND WHEN YOU HEAR
THE WORD ‘NOODLES’?
3) JUICES
1) TASTE 2) VARIETY/FLAVOURS
3) HYGIENE/PURITY 4) AVAILABILTY
5) PACKAGING
Q.11. ARE YOU HAPPY WITH THE CURRENT PRICES AND SIZE VARIANTS OF
MAGGI PRODUCTS?
1) YES 2) NO