3.Dr. Moloy Ghoshal - Megha PDF
3.Dr. Moloy Ghoshal - Megha PDF
3.Dr. Moloy Ghoshal - Megha PDF
The Project entitled “The Recent Controversy on Maggi: Myth or Reality- Case Study” deals with the
study of the Maggi Brand that was launched in India in the year 1983, by Nestle India Limited,
which became famous with noodles. Mainly, this project studies the Marketing and
Promotional strategies that are adopted by Nestlé India Limited for Maggi over the years.
And also to know about the market position of Maggi as a Brand, how they survived in the
past, what all strategies they adopted to become a well known and well established brand
and the recent controversy of Maggi and its effect in the market and on the consumers.
To give views on the recent controversy on Maggi that what is the reality and what
is the myth.
REVIEW OF LITERATURE
o Maggi samples sent for tests [TNN | May 31, 2015, 02.54 AM IST]
NOIDA: The food safety department in Noida took four samples of Maggi from
different shops to check its quality during its routine quality check drive on Saturday.
S N Singh Yadav, district food safety officer, said his department has received an
order from the UP health department to conduct a quality check on food items. "We
picked up one Maggi sample, among other items, from Vishal Mega Mart in Bhangel.
The officials at the retail outlet informed us that they got the products from a
distributor in Sector 7. We picked up three more samples from the distributor for
checking," he said.
An official said that the samples have been sent to Lucknow for quality test in a
government lab. The reports will be available next month.
Nestle India is heading for a legal trouble over safety standards of its Maggi noodles.
o Ramdev eyes Maggi's space with cheaper Atta noodles[ TNN | Oct 3, 2015,
04.00AM IST]
MUMBAI: In a couple of months when Nestle re-launches its Maggi noodles, it will
have to fight on two fronts. On the one hand, it faces an uphill task over its noodles'
negative brand perception due to the controversy earlier this year. On the other, Nestle
will have an equally major challenge from Baba Ramdev's Patanjali Ayurved, which
is readying to roll out its own brand of Veg Atta Noodles at a huge discount to
Maggi's product.
Patanjali Ayurved plans to launch its atta noodles for around 30% less than Maggi atta
noodles' price prior to its withdrawal from the market. Patanjali aims to introduce its
noodles in about a fortnight, well before Nestle can re - launch Maggi subject to a nod
from the Bombay high court.
o Samples of Maggi will be tested again [TNN | Oct 14, 2015, 06.47 AM IST]
BENGALURU: The controversy over Nestle's Maggi noodles refuses to die down in
Karnataka. A week after health minister UT Khader said the government is thinking
of lifting the ban, the instant noodles will be sent for another test.
While the NABC-approved lab in Bengaluru indicated that both lead and
monosodium glutamate (MSG) levels were within permissible limits, the results from
Central Food Technological Research Institute, Kolkata, showed the lead content is
higher by 0.01 per cent in the samples sent by Karnataka.
Khader on Tuesday said the government has now decided to send the samples for the
third time to another state for another round of testing. "Karnataka had never banned
Maggi. It was only on the directions of the Centre and the Food Safety and Standards
Authority of India that we banned the product. Now since once of the readings (by
CFTRI) have gone wrong, it needs to be looked into," he said.
o Ban lifted, Maggi-lovers rejoice on net[TNN | Nov 11, 2015, 02.46 AM IST]
LUDHIANA: The entire country seems to be celebrating the revival of Maggi, the
two-minute noodles, after an almost six-month ban with Ludhiana residents eagerly
waiting the time when their favorite noodles will be available in the city.
With the excitement reaching zenith, some citizens have opted for social networking
sites to express their happiness over the news.
Palak Kochar, a 22-year-old BTech (computer science) student, has made a spoof of
her engineering grades by posting, "Even Maggi noodles are superior to us. It has
cleared all its failed tests within a year."
Raghav Mishra, 18, is elated on the news of lifting of ban on Maggi. He is eagerly
awaiting the noodles to be back on the shelf. He posted, "Raghav ko Maggi se door
rakhna mushkil hi nahi , namumkin hai."
While some are posting their status on coming back of Maggi, others are sharing their
dance videos showing their reactions on lifting of the ban. There are also made-up
videos on Bollywood songs that have Maggi instead of actors.
The net is abuzz with several jokes on how the return of Maggi has even increased
hope for the unmarried girls. As told by 25-year-old Ashmita Chadda, "With Maggi
banned, I had deleted my hobby listed as cooking (as I could only cook Maggi) on my
social networking site, while with the latest update I have altered my hobby status
back to cooking."
Albeit the excitement, city residents are of the view that had the ban been lifted a few
days earlier, the festive spirit would have been manifold for them.
"I won‟t mind gifting a pack of Maggi noodles as Diwali gift to my friends and
relatives," said Akshay Chopra, a resident of BRS Nagar.
CFTRI had tested five samples sent by Goa Food and Drug Administration (FDA) when
Maggi was banned in June in the wake of findings in Uttar Pradesh and other states that the
instant noodles brand had lead levels beyond permissible limits.
"CFTRI finding shows that samples are in compliance with the food safety standards as per
the Food Safety and Standards Rules, 2011," Goa FDA director Salim A Veljee told PTI.
Goa FDA had sent the Maggi noodles samples to Mysore-based CFTRI for retesting of the
safety of instant noodles after FSSAI expressed apprehensions on state FDA's initial report,
which had found lead within permissible limits.
In June this year, Nestle had to take Maggi off the shelves, after few states decided to ban the
noodles. FSSAI had also banned Maggi instant noodles terming them "unsafe and hazardous"
for human consumption.
FSSAI had also said that Nestle violated labeling regulations on taste enhancer 'MSG' and
ordered company to submit compliance report on its orders.
Meanwhile, Nestle India's new chief Suresh Narayanan had said that bringing the instant
noodles brand back to the market is his top priority as he sought to strike a conciliatory note
with authorities.
RESEARCH METHODOLOGY
Qualitative method will be used in the study. Qualitative method strives on understanding data
through giving emphasis on determining people words and actions. This project titled as mentioned
involves the study of Marketing & promotional strategy of Nestle Maggi Noodles and the
difficulties it faced during the years, is completed by collecting data from the below
mentioned two sources-
Sources of Data collection
Primary source
The primary data used in this report include the questionnaire in which the
consumer/customer data is collected regarding their views towards Nestle Maggi noodles. For
primary data, I proceeded with the drafting of the questionnaire. The questionnaire method
was used-
b) Questionnaire provides versatility and solutions can be obtained by just asking the
questions.
Secondary source
This will include data collection from various websites and books. It also includes data from
company and other referral sites and sources. Secondary data was also collected personally by me,
which the company has furnished for the general public. The secondary data was gathered
with the help of various magazines, newspapers, journals, brochures and also through the
internet.
LIMITATIONS
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-
(2) Time pressure and fatigue on the part of respondents and interviewer.
(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.
(6) The data in this study is maximum taken from the primary sources .so, these data is not
fully exact.
The marketing mix and the 4Ps of marketing are often used as synonyms for each other. In
fact, they are not necessarily the same thing.
"Marketing mix" is a general phrase used to describe the different kinds of choices
organizations have to make in the whole process of bringing a product or service to market.
The 4Ps is one way – probably the best-known way – of defining the marketing mix, and was
first expressed in 1960 by E J McCarthy.
Price.
Place.
Promotion.
PRODUCT MIX
Definition:
A product is anything that can be offered to the market to satisfy a want or need, including
physical goods, services, experience, events, persons, places, properties, organizations,
information and ideas.
Nestle unleashed Maggi Brand in India almost 25 years ago in 1983 with launch of its
traditional 2 minutes Noodles in its Masala, Tomato and Chicken flavors, followed by its
Curry flavor some years down the line.
Maggi was launched in India at the time when instant Noodle was not that well known a
category.
source of Protein, Calcium and Fibre, and has added vegetables. Available with a
delicious Spice Remix tastemaker.
PRICE MIX:
Definition:
Price of the company‟s product is considered as one of the 4 P‟s in the 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 listed below that are set by the company for different flavors of MAGGI
Noodles.
MAGGI 2 MINUTE NOODLES PACK PRICE (Rs)
SIZE(gm)
Masala 50 5
Masala 100 10
Masala 200 20
Masala 400 38
Masala 600 54
Masala 800 72
Chicken 100 10
Curry 100 10
Tomato 100 10
As we talk about Maggi, it is very popular all over the world and its main customers are
children and youngsters. As we know that the price of Maggi Noodles is not very high, but
there are so many competitors in the market, so the company can‟t set the different price from
the competitors. Company is having a tough competition with Sun Feast Yippee Noodles.
One advantage of the company is that noodle‟s packets are available in different sizes
comparing with the brand called Top Ramen.
Definition:
Place refers to the location where the products are available and can be sold or purchased.
Buyers can purchase products from physical markets or from virtual markets. In a physical
market, Buyers and Sellers can physically meet and interact with each other whereas in a
virtual market buyers and sellers meet through internet. Thus with the ease and options you
can make your product or service available to the customers will have an effect on the sales
volumes.
To keep up with the growing trends in the Noodles sector, an intensive dealer – distributor
network is required. Maggi has a well established distribution network.
Thus from the chart it can be said that the distribution network is well spread almost
everywhere on India, as it is easily available in Local stores, Retail stores etc.
But in order to strengthen the distribution, NIL should expand its market to Rural India with
products targeted to the market. Thus this can be one of the way by which they can increase
its volume of sales, so major focus should be done on this market as well.
PROMOTION MIX:
Definition:
Promotion refers to the various strategies and ideas implemented by the marketers to make
the end users aware of their Brand. Promotion includes various techniques employed to
promote and make the Brand popular amongst the masses.
PUBLIC RELATIONS: Public Relations (PR) is a single, broad concept. It is broad since it
contains so many elements, many of which will be outlined in this lesson. Public Relations
(PR) are any purposeful communications between an organization and its publics that aim to
generate goodwill.
Maggi has faced a lot of hurdles in its journey in India. The basic problem the Brand faced in
the Indian Psyche. 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. NIL‟s promotions positioned the noodles as a
„Convenience Product‟, for mothers & as a „Fun‟ product for children. The noodles tagline,
„Fast to cook Good to Eat‟ was also keeping with this positioning.
Print Ads
Maggi does not focus heavily on print media during its launch time since its initial target
audience was Mothers and Kids. But later on some advertisements in the Print Media
were used to highlight the convenience factor of Maggi.
The online Maggi recipe challenge, wherein innovative recipes with Maggi Noodles as a
base are invited. Winning entries are compiled into an e-cookbook which is published
online.
Sales Promotion
a. Maggi was distributed free in Schools and offices to promote trial.
b. Return gifts on empty packs.
c. Maggi fun book and stickers with funky animal facts.
Public Relations
a. THE MAGGI CLUB: The children under 14 were invited by Press Advertisements and
distribution of leaflets to become a member of Maggi club by sending logos cut from 5
empty Maggi wrappers.
b. Benefits offered to Maggi clubbers are various games like Snap Safari, Travel India
etc.
c. Some special privileges were given to regular members time to time.
d. The company also organized Maggi school quizzes and sketching.
Q1. What comes first in your mind when you hear the word MAGGI?
Noodles 81
Fast Food 11
Snacks 8
None of these 0
80
60
40 #REF!
20
0
Noodles Sauces Soups Pazzta
Interpretation
Out of 100 people, 81 agreed that when they hear the word MAGGI, the first thing
that comes in their mind is Noodles, and remaining 19 said Fast food and snacks,
comes in their mind.
Noodles 75
Sauces 10
Soups 11
Pazzta 4
Noodles
Sauces
Soups
Pazzta
Interpretation
Out of 100, 75 people prefer noodles, 10 sauces and remaining 14 soups and pazzta. It shows
that the popularity of Maggi Noodles is much more than the other products of Maggi
YES 91
NO 9
awareness of controversy
100
90
80
70
60
50
answers
40
30
20
10
0
YES NO
Interpretation
Out of 100, 91 people were of the recent controversy, and 9 of them were not aware of them.
It can be interpreted that almost most of the people were aware of the controversy.
Q4. Do you think is there any internal rivalry behind this controversy or not?
YES 69
NO 31
internal rivalry
80
70
60
50
40
answers
30
20
10
0
YES NO
Interpretation
Out of 100, 69 people think that there was an internal rivalry behind this recent controversy
and others think that it was just a misconception nothing else.
Q5. What do you think, after the recent controversy, can company will be able to regain
its Market Share?
YES 56
NO 44
YES
NO
Interpretation
Out of 100, 56 people believed that the company will be able to regain its Market Share and
44 of them said that the company will not be able to do so. It can be interpreted that people
still have faith in this brand and is hoping that Maggi will be able to regain its Market Share.
Yippiee Noodles 45
Wai Wai 30
Top Ramen 15
Others 10
Yippiee Noodles
Wai Wai
Top Ramen
Others
Interpretation
Out of 100, 45 people switched to Yippiee Noodles and the second most preferred product is
Wai Wai by 30 people. 15 of them switched to Top Ramen, and 10 to other products. It can
be interpreted that after Maggi, Yippiee and Wai Wai is preferred by the consumers.
Therefore they are one of the biggest competitors of Maggi.
Q7. Do you think recent controversy on Maggi affected the other products of Maggi
brand?
YES 51
NO 49
51
50.5
50
49.5 opinion
49
48.5
48
YES NO
Interpretation
Out of 100, 51 people said that recent controversy had affected the other products of Maggi
and 49 said that it does not affected the other products of Maggi. It can be interpreted that
somehow the recent controversy had affected the other products of Maggi.
YES 19
NO 81
Controversy
100
80
60
40 trust
20
0
YES NO
Interpretation
ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 654
XVII Annual International Seminar Proceedings; January, 2016
Out of 100, 81 people don‟t believe in the controversy of Maggi Noodles, and 19 believe it to
be true. It can be interpreted that Maggi‟s loyal customers still have faith in it and prefer to
trust Maggi even after the controversy had taken place.
Q9. Do you perceive Maggi Noodles, now as a healthy product?
YES 75
NO 25
Healthy product
YES
NO
Interpretation
Out of 100, 75 people considered Maggi Noodles as a Healthy Product and other 25 said it is
not healthy. It can be interpreted that most of the people even after the controversy consider
Maggi Noodles to be healthy and have faith in it.
Q10. When you heard that Maggi is going to be Re – Launched, what was your first
Reaction?
Extremely Happy 71
Happy 17
Not Happy 8
Not at all Bothered 4
Extremely Happy
Happy
Not Happy
Not at all Bothered
INTERPRETATION
Out of 100, 71 people were extremely happy, 17 were Happy and 8 were not happy and 4 of
them were not at all bothered. It can be interpreted that most of the people were happy after
hearing the news of Maggi‟s Re-Launch.
Q11. After the recent controversy of Maggi, do you still prefer to buy it after its Re-
launch?
YES 81
NO 19
Interpretation
Out if 100, 81 people will still buy Maggi Noodles after the Re-Launch and 19 will
not prefer to buy it. It can be interpreted that most of the people are still eagerly
waiting for the product to be once gain sold in the market and are ready to purchase it.
It shows that the recent controversy did not had an extreme impact on the loyal
customers.
After analyzing all the Reports studied from the newspaper, Online Magazines, TV
reports, and the survey held on Maggi and studying the marketing mix of Maggi, it
can be concluded that the controversy of Maggi did not affect the loyal customers of
Maggi Noodles. The Bombay High Court set aside the countrywide ban on Nestle‟s
Maggi instant noodles, saying the national food regulator had acted in an “arbitrary”
manner and not followed the “Principles of Natural Justice” while banning the
product.
"It has been brought to our attention that the Supreme Court website has posted that
the Food Safety and Standards Authority has filed a case against Nestle India Ltd and
Others. We have not been served a notice about this and are not yet aware of its
content. However, we would like to reiterate that Nestle India is confident of the
quality and safety of MAGGI Noodles and so we will defend ourselves vigorously," a
Nestle India spokesperson said.
In June, the FSSAI had banned Maggi noodle products saying it was "unsafe and
hazardous" for consumption after finding lead levels beyond permissible limits. The
company had withdrawn the instant noodle brand from the market.
Nestle India said on May 21, “We do not add MSG to our Maggi noodles sold in India
and this is stated on the concerned product. However, we use hydrolysed groundnut
protein, onion powder and wheat flour to make Maggi noodles sold in India, which all
contain glutamate. We believe that the authorities‟ tests may have detected glutamate,
which occurs naturally in many foods.” FSSAI-approved testing methods for MSG
only test for glutamic acid, which is a component of several foods, including
hydrolised vegetable proteins. “Tests in India are not as sensitive as those in
The court, however, ordered Nestle India to conduct fresh safety tests onfive samples
of each variant of the noodles at three independent laboratories in Punjab, Hyderabad
and Jaipur which were accredited with National Accreditation Board for Testing and
Calibration Laboratories (NABL) before re-launching it. It was said that if the lead
content is within the permissible limit of 2.5 ppm, only then company will be allowed
to sell the product in the market. On November 9, the Indian arm of Swiss company re
- launched Maggi noodles in India, five months after they were banned for allegedly
containing lead beyond permissible levels.
In between, RamDev also introduced Patanjali Atta Noodles. The taste was nice but
still in the end, people will continue to eat Maggi because nothing can beat the taste of
Maggi and nothing can satisfy the hunger of Maggi. In my opinion, this controversy
was just a myth, nothing else. Let‟s just hope that Maggi Noodles can regain its
Market share once again and just wish all the luck for the company. Yes, Somehow
very few people got effected by this incident otherwise people are still in love with
Maggi Noodles and after its Re – Launch people are eagerly waiting to buy it after the
5 months Ban lifted from it.
To gain the market share as it was before the controversy, the company should go for
damage repairing activities-
Company should organize campaigning in different part of the country.
Company should use the recent court‟s verdict in their advertisement to build
confidence in the mind of consumers.
Company should focus on rural market through free sampling and
improvement in distribution channel.
References:
GUPTA C.B. “Marketing Management”, Sultan Chand & Sons, 2004.
Kotler & Armstrong, “Principles of Marketing Management”, Prentice Hall India,
2003.
Varshney & Gupta, “Marketing Management,” Sultan Chand & Sons, 2005.
Gandhi, T.C., “Marketing A Managerial Introduction”, 2003.
T.N. Chabra & S.K. Grover, “Marketing Management”, Dhanpat Rai & co.
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