CHAPTER 1

INTRODUCTION

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 1.1 INTRODUCTION

Effective communication is an essential aspect of building and maintaining strong business

relationships. Communication plays a critical role in establishing trust, resolving conflicts,
and creating a positive and collaborative work environment. In this case study, we will
examine how communication has impacted the business relationship between Nestle Maggie
and its customers.

Nestle Maggie is a popular brand of instant noodles that is widely consumed in India and
other parts of the world. In 2015, Nestle Maggie faced a major crisis when it was found that
some samples of its noodles contained unsafe levels of lead and monosodium glutamate
(MSG). This revelation led to a public outcry, and the Indian government banned the sale of
Nestle Maggie noodles in the country.

One of the key factors that contributed to this crisis was a breakdown in communication
between Nestle Maggie and its customers. For example, when the controversy first broke out,
Nestle Maggie failed to communicate effectively with its customers about the safety of its
products. Instead, the company issued a statement denying the allegations and reassuring
customers that its products were safe. However, this statement was met with skepticism and
did not address the concerns of the customers.

Furthermore, Nestle Maggie also failed to engage in a dialogue with its customers and other
stakeholders, which could have helped to identify and address the root causes of the problem.
Instead, the company adopted a defensive posture and focused on protecting its reputation
rather than resolving the issue.

As a result of these communication failures, Nestle Maggie suffered significant damage to its
brand image and lost the trust of its customers. Sales of Nestle Maggie noodles plummeted,
and the company faced a long and difficult road to rebuilding its reputation and restoring
customer confidence.

In conclusion, the Nestle Maggie case study demonstrates the critical importance of effective
communication in building and maintaining strong business relationships. When
communication breaks down, companies risk losing the trust and loyalty of their customers,
as well as damaging their reputation and brand image. By prioritizing clear, transparent, and

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open communication with customers and other stakeholders, businesses can build stronger
relationships and foster a more collaborative and productive work environment.

After the Nestle Maggie crisis, the company took several steps to improve its communication
practices and restore customer trust. For example, Nestle Maggie engaged in a dialogue with
its customers and other stakeholders, listening to their concerns and addressing them
transparently. The company also launched a comprehensive testing program to ensure the
safety of its products and shared the results of the tests with its customers.

Nestle Maggie also made changes to its communication strategy, focusing on transparency,
honesty, and open dialogue with customers. The company launched a campaign to educate
customers about the safety of its products and the steps it was taking to address the concerns
raised by the controversy. Nestle Maggie also began using social media and other digital
channels to engage with customers and respond to their feedback and concerns.

These efforts paid off, and Nestle Maggie was eventually able to regain the trust of its
customers and restore its reputation. Sales of Nestle Maggie noodles recovered, and the
company was able to rebuild its business in India and other parts of the world.

The Nestle Maggie case study highlights the importance of effective communication in
managing business relationships, especially in times of crisis. By listening to customers,
being transparent and honest, and engaging in open dialogue, businesses can build trust and
strengthen their relationships with customers and other stakeholders. Effective
communication is not only essential for resolving conflicts and addressing concerns but also
for fostering a collaborative and productive work environment that supports innovation,
growth, and success. In addition to rebuilding trust and reputation, effective communication
can also create opportunities for businesses to differentiate themselves from their competitors
and drive growth. By engaging in open dialogue with customers, businesses can gain
valuable insights into their needs, preferences, and expectations, and use this information to
develop products and services that better meet their needs.

Furthermore, effective communication can also help businesses to build stronger partnerships
with suppliers, distributors, and other stakeholders. By collaborating closely and sharing
information transparently, businesses can improve the efficiency and effectiveness of their
operations, reduce costs, and improve their overall performance.

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Overall, the Nestle Maggie case study underscores the importance of effective
communication in building and maintaining strong business relationships. By prioritizing
clear, transparent, and open communication with customers and other stakeholders,
businesses can build trust, foster collaboration, and create value for their customers and
shareholders. While communication challenges and crises are inevitable in any business,
companies that prioritize effective communication are more likely to weather these
challenges successfully and emerge stronger and more resilient in the long run.

The Nestle Maggie case study is a prime example of the impact of communication on
business relationships. In 2015, Nestle India, the subsidiary of Nestle SA, faced a major crisis
when its popular instant noodle brand, Maggie, was found to contain unsafe levels of lead
and MSG. This led to a nationwide ban on the product, and Nestle India was forced to recall
millions of packets of Maggie from the market.

The crisis had a significant impact on Nestle India's business relationships, particularly with
its customers and suppliers. Customers lost faith in the brand, and sales of Maggie
plummeted. Suppliers and distributors who depended on Maggie for their business were also
adversely affected. The crisis threatened to erode Nestlé’s reputation and market share in
India, one of its largest markets.

Effective communication was essential in managing the crisis and mitigating its impact on
Nestlé’s business relationships. The company needed to communicate transparently and
proactively with its customers, regulators, suppliers, and other stakeholders to address their
concerns, provide accurate information, and restore trust.

Nestle India took several steps to communicate effectively during the crisis. The company
engaged with customers through various channels, including social media, to address their
concerns and provide information on the safety of its products. It also launched an extensive
testing program to ensure the safety of Maggie noodles and shared the results with its
customers and other stakeholders.

Furthermore, Nestle India communicated transparently with regulators, suppliers, and other
stakeholders, keeping them informed of its efforts to address the crisis and ensure the safety
of its products. The company also worked closely with its suppliers and distributors to ensure
that they were supported during the crisis and could resume their businesses once the crisis
was over.

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Through its effective communication, Nestle India was able to rebuild trust with its
customers, regulators, and other stakeholders. Sales of Maggie noodles eventually recovered,
and the company was able to regain its market share in India.

The Nestle Maggie case study illustrates the importance of effective communication in
managing business relationships, especially during a crisis. By communicating transparently,
proactively, and effectively with customers, regulators, suppliers, and other stakeholders,
businesses can mitigate the impact of a crisis, rebuild trust, and strengthen their relationships.
Effective communication is essential for building and maintaining strong business
relationships, fostering collaboration, and driving growth and success. Moreover, the Nestle
Maggie case study also highlights the need for businesses to prioritize communication as a
key part of their risk management strategy. Effective communication can help businesses to
identify potential risks and issues early on, and take proactive steps to address them before
they escalate into a crisis.

By regularly communicating with customers, suppliers, regulators, and other stakeholders,

businesses can stay attuned to their concerns and expectations, and take steps to address them
proactively. This can help businesses to build stronger relationships with their stakeholders,
and position themselves for long-term success.

In summary, the Nestle Maggie case study provides valuable insights into the impact of
communication on business relationships. Effective communication is essential for building
and maintaining strong relationships, mitigating the impact of crises, and driving growth and
success. By prioritizing communication as a key part of their risk management strategy,
businesses can position themselves for long-term success and build sustainable competitive
advantages. With a population over 1.3 billion, Maggi is not only India’s most favorite snack
but also arguably the biggest consumer of Nestlé’s famous instant

noodles (Snyder, 2015). The idea of something being cooked within 2 minutes grasped the
heart of the Indian population as the product caters to millions of the Indian taste and
economy. Maggi made its debut in the Indian market in 1983 and quickly became popular in
the Indian household (BBC, 2015). Easy to make, affordable and the burst of flavors enticed
Maggi to the people of India. Maggi has been voted as the 5th most trusted brand in 2014
(The Economic Times, 2014), Maggi earned a reputation for being healthy and trustworthy
among the Indian population; but the recent scandal regarding the discovery of the false

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packaging statement about no added MSG (Monosodium Glutamate) despite the ingredient
being found in the product and as well as the excessive amounts of lead than permissible.
This has caused a very huge issue for Nestle that eventually turned into one of the biggest
crisis ever known in India, one popular news caster even compared the crisis as having the
same magnitude as the Bhopal industrial accident. The public relations debacle cost the
company nearly half a billion dollars and crumpled Maggi’s pristine reputation in India
which took them

nearly three decades to build (Longstreth,2016). Maggi is a product of Nestle and is known
to be the world’s largest food and beverage

company. The company has catered to the Indian consumers need by catering the product in a
variety of flavors making the local favorite curry in a cup a sensation for the Indian
consumers. India is accountable for a quarter of the $1.6 billion revenue Nestle makes which
reflects on the high demand of the product in this particular part of the world (Fry, 2016). The
Maggi brand is not deemed as any ordinary brand in India, but it has become a part of the
Indian culture that many families first choice for a quick snack for their children.

Due to fast cooking properties, instant noodles today have occupied an important position in
almost every Indian kitchen. Since most of the women in urban India are working, instant
noodles and ready-to-eat foods are slowly and steadily replacing the traditional rice and
pulses. Modern formats, which provide high product visibility and good product displays, are
acting as a good marketing platform for brands to promote their product offerings via
consumer schemes like price discounts, bundled offers, sampling for new launches, etc.

Trends in Indian Noodle Market

1. Increasing competition: Competition in instant noodle category has intensified with

players such as GlaxoSmithKline (Horlicks Foodles), ITC (Sunfeast Yippee noodles), Capital
Foods and Hindustan Unilever launching new products 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

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campaign with their new product vegetable multigrain noodle. 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 weak customers while Glaxo’s Foodles also stresses on the multigrain aspect of
their product

4. Traditional flavors still dominate: Masala, chicken and tomato are most popular
flavors 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

Key Players in Indian Noodle Market

The instant noodle market is dominated by MNCs; very few local players have a sizeable
presence. Some of the key players in the market along with their brands are:

1. Nestle (Maggi)

2. Hindustan Unilever (Knorr Soupy Noodles)

3. GlaxoSmithKline Consumer Healthcare (Foodles)

4. Capital Foods Ltd. (Ching's Secret)

5. ITC (Sunfeast Yippee noodles)

6. CG Foods India Pvt. Ltd.(wai wai)

7. Future Group (tasty Treat)

Opportunities in Indian Noodle Market

1. Health and wellness theme: Health and wellness theme based packaged food is
gaining popularity in India and the market of such noodles is still open as traditional player
Maggi is not associated with “health” but with convenience and taste.

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 2 Huge Rural market: rural India where close to 60% of Indian population resides is a
huge consumption market virtually un-penetrated by any player. Low cost products with
appropriate marketing can open up this huge market.

Maggi is an international brand of seasonings, instant soups, ketch ups and noodles owned by
Nestle since 1947. The original company was founded in Switzerland in 1872 by Julius
Maggi. The original company came into existence in 1875 in Switzerland when Julius Maggi
took over his father's mill. He quickly became a pioneer of industrial food production, aiming
to improve the nutritional intake of worker families. Maggi was the first to bring protein-rich
legume meal to the market, and followed up with a ready-made soup based on legume meal
in 1886. In 1897, Julius Maggi founded the company Maggi GmbH in the German town of
Singen, where it is still based today.

In 1947, following several changes in ownership and corporate structure, Maggi's holding
company merged with the Nestle Company to form Nestle - Alimentana S A, currently
known in its francophone home base as Nestle S.A. The Nestle India which is subsidiary of
Nestle S A introduced Maggi brand in India 1982, with its launch of 2 Minute Noodles, an
instant noodles product. With the introduction of Maggi 2 Minute noodles Nestle India
created an entirely new food category – instant foods in Indian packaged food market.
Because of its first-mover advantage Nestle India successfully retained to manage its
leadership in noodles category. Nestle India offered a variety of products such as instant
noodles, soups, sauces, and ketch ups, cooking aids, etc…under the Maggi brand. Out of
these instant noodles were Nestle’s main products which contributing around 20% of the
company revenue.

During 1990s the sales of Maggi noodles declined, and this was attributed partly to the
growing popularity of Top Ramen, another instant noodles product. In order to increase sales
and attract customers Nestle India changed the formulation of Maggi noodles in 1997.That
was unsuccessful, customers did not like the taste of new noodles. In 1999 Nestle
reintroduced the old formulation of the noodles, after the sales revived. Over the years Nestle
introduced several other products like soups and cooking aids under the Maggi brand.
However these products were not as successful as the instant noodles. In 2000 the company
set up new research and development facilities with a view to improving the attributes of the
existing Nestle products.

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In 2005 they introduced Vegetable Atta Noodles in the market. Up to mid of 2015 Maggi was
synonymous with instant noodles and had an 80% share in Indian noodles market. In the mid
of 2015 the Food Safety and Standard Authority of India (FSSAI) found that Maggi Noodles
has Monosodium glutamate, and Lead beyond the permissible amount. The central
government of India banned Maggi in Indian markets.

The following diagram shows the position of Maggi in Indian noodle market and other ready
to eat food products market.

Market share of Maggi in other Market share of Maggi in

ready to eat product market in noodles market of India
India

20%
Maggi Maggi
others others

45%
55% 80%

Source : From Google Source : From Google

Various Varieties of Maggi Noodles in Indian Market

Maggi 2- Minute Noodles

It is one of the largest and most loved food brands that defines instant noodles in india.This
Maggi noodles is available in 4 delectable flavors - Masala, Chicken, Tomato and Curry

Maggi Vegetable Atta Noodles

Maggi atta noodles are introduced mainly for vegetarians. It was filled with real vegetables
and offering with masala flavor.

Maggi Cuppa Mania

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Maggi cuppa mania was a mixture of above two variants.Maggi cuppa mania comes in two
mouth watering variants, masala, real vegitables and calcium.

COMPETATORS OF MAGGI NOODLES IN INDIAN MARKETS

1. ITC Sunfeast Yippee

Another popular noodle brand in India is Sunfeast Yippee, which belongs to the Indian
conglomerate ITC. Yippee made its way into the Indian market in the first decade of the
2000s and gradually made a considerable presence. By the early 2010s, Yippee had
started giving market leader Maggi some sort of competition. Yippee noodles are
available in five different variants; namely,

 Classic Masala,
 Magic Masala,
 Chinese Masala,
 Tricolor Pasta (Creamy Corn) and
 Tricolor Pasta (Masala).

2. Top Ramen

Top Ramen, by Nissin, is another leading noodle brand in India. Nissin is a Japanese
company that introduced its first noodle product in 1958 but entered the Indian market 30
years later in 1988. It took a while for Top Ramen to become one of the leading noodle
brands in India. Different variants of Top Ramen noodles in India include

 Atta Noodles,
 Cup Noodles,
 Curry Veg Noodles,
 Oats Noodles,
 Scoopies Short Noodles and
 Super Noodles.

3. Ching's Secret

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Ching's Secret is another popular noodle brand in India. It is a product of Capital Food
Indian Limited. Another popular brand of noodles in India produced by Capital Food
India Limited is Smith & Jones. But Ching's Secret is the more popular one and is giving
stiff competition to the top noodle brands in India. Ching's Secret offers a vast range of
products to its customers that include

 Schezwan Instant Noodles,

 Singapore Curry Instant Noodles,
 Hot Garlic Instant Noodles,
 Egg Hakka Noodles and
 Veg Hakka Noodles.
4. Knorr Soupy Noodles

Knorr Soupy Noodles is a product of Hindustan Unilever and has turned out to be a
popular brand in India of late. Knorr is famous for its unique range of soups in India and
is the leading brand for the same but has earned accolades for its unique combination of
noodles and soup, that is, Knorr Soupy Noodles. Knorr noodles range consists of

 Mast Masala Soupy Noodles,

 Knorr Chinese Noodle Hot Spicy,
 Knorr Chinese Noodle Schezwan,
 Chinese Noodles and
 Fried Rice.

5. Glaxo Smithkline Horlicks – Foodles

GlaxoSmithKline (GSK) is a British multinational pharmaceutical, biologics, vaccines

and consumer healthcare company headquartered in London, United Kingdom. In 2009,
GSK launched Foodles under its brand name Horlicks.Foodles gives the taste of instant
noodle with the goodness of Wheat, Ragi, Rice, and Corn. Ala masala variant contains
Wheat 75%, Rice 1.2%, Corn 1.2%, Ragi 1.2%, Edible vegetable oil, minerals and salt.
GlaxoSmithKline Consumer Healthcare has launched– ‘Foodles’ from Horlicks. These
instant noodles feature a Health maker™, which is fortified with 9 vital nutrients and is
packed with the goodness of iron and calcium. Foodles from Horlicks is available in two
options- Regular and Four-Grain. The four-Grain Variant is made with nutritious grains-

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 rice, corn, rag and wheat, said a press release. The company launched its noodles under
the popular Horlicks brand named ‘Foodles’ in the year 2009.

In May 2015, Food Safety Regulators from Uttar Pradesh, India found that samples of Maggi
2 Minute Noodles had unexpectedly high levels of monosodium glutamate, as well as up to
17 times the permissible limit of lead. On 3 June 2015, the New Delhi Government banned
the sale of Maggi in New Delhi stores for 15 days due to these findings. On June 4, 2015,
the Gujarat FDA banned the noodles for 30 days after 27 out of 39 samples were detected
with objectionable levels of metallic lead, among other things.

Assam had banned sale, distribution and storage of Maggi's "extra delicious chicken noodles"
variety for 30 days since June 4, 2015 after tests carried out at the state public health
laboratory concluded the particular variety to contain added MSG and excessively high lead
content. Some of India's biggest retailers like Future Group which includes Big
Bazaar, Easyday and Nilgiris have imposed a nationwide ban on Maggi. Thereafter multiple
state authorities in India found an unacceptable amount of lead and it has been banned in
more than 5 other states in India. On June 4, 2015 the government of Tamil Nadu also banned
maggi due to unacceptable amount of lead and other components. On June 5 th the Andhra
Pradesh Government Banned Maggi. Maggi will not be banned in Karnataka for now,
declared minister for health and family welfare U T Khader during a press meet on June 26.

On June 5, 2015, Food Safety and Standards Authority of India (FSSAI) ordered a recall of
all nine approved variants of Maggi instant noodles and oats masala noodles from India,
suggesting them unsafe and hazardous for human consumption. On the same day, Food
Safety Agency of United Kingdom launched an investigation to find levels of lead in Maggi
noodles. On June 6, 2015 the Central Government of India banned nationwide sale of Maggi
noodles for an indefinite period. Nepal indefinitely banned Maggi over concerns about lead
levels in the product. Maggi noodles has been withdrawn in five African nations- Kenya,
Uganda, Tanzania, Rwanda and South Sudan by a super-market chain after a complaint by
the Consumer Federation of Kenya.

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It was revealed later that the United States Food and Drug Administration (FDA) had refused
import of the noodles in January 2015 on grounds similar to the reasons for ban in India.
Ironically, the Bombay High Court allowed the export of Maggi while the ban in India
remained. FIRs against Bollywood Maggi Brand Ambassadors Amitabh Bachchan, Madhuri
Dixit & Preity Zinta were lodged at a local court, asking the authorities to arrest them if
required.

1.2 NEED FOR THE STUDY

1. The customers were interested to find out the best ready to cook products in the
present market.
2. The company was interested to know the current market trends of the instant foods.
3. The customers were interested to know about the health hazards and dangerous
ingredients of the instant foods.

1.3 STATEMENT OF THE PROBLEM

The Indian fast food industry was a growing industry until the ban of Maggi noodles. This is
a descriptive study about the impact of Maggi banning in Indian ready to cook food products.
India’s market for processed, packaged, and branded foods is a nascent one where consumers
are largely unaware of the ingredients, addictive and other attributes of what they buy and
eat., even though they decide the future of each product. So I took 61 customers as sample.

The ready to cook market is wider market in India. Maggi was the major market share holder
in Indian ready to eat food market with their noodles and other instant foods. Maggi noodles
account for 20% of Nestle Company’s overall revenue. Large numbers of players are there.
So it is difficult to reach millions of customers and large number of players. Maggi problem
has made certain confusions in the market about the genuineness of these products. So I am
trying to make a brief study on the effect of Maggi ban on other ready to cook products and
its remedial solutions.

1.4 OBJECTIVES OF THE STUDY

1. To find out the impact of magi banning on similar food products.

2. To find out the demand variances of ready to cook food products after maggi issue
3. To understand the behavioral change of customers towards fast-food

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4. To determine the knowledge base of consumers about the fast-food culture

1.5 SCOPE OF THE STUDY

1. The present study will aim at studying, the influence of maggi banning
on other ready to eat foods.
2. The study helps the company to prepare a definite brand positioning and market
penetration policies.
3. The study helps the company to find out present customer attitudes.
4. The study helps to get an idea about the latest market share of each company.
5. The study helps company to meet the customer queries doubts by introducing proper
customer relation techniques.

1.6 LIMITATIONS OF THE STUDY

Through adequate care has been taken while doing the project. This project still suffers
from certain limitations. They are;

1. It is a wider topic. It may have different dimensions. However, it is possible

that there will be other factors, which might not have been covered in this
study.
2. Some respondents did not properly respond to the questionnaire.
3. The results and conclusions of the project cannot be generalized in all area of
an organization.
4. There was shortage of time and resources for the functioning of operation.

1.7 METHODOLOGY OF THE STUDY

Two techniques were used for collecting data, namely;

 Primary data collection technique

 Secondary data collection technique

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PRIMARY DATA

Primary data are collected afresh and for the first time. It is the data originated by the
researcher specifically to address the research problem. In this study, the primary data are
collected from the general public regarding their views towards ready to cook products
through questionnaire.

SECONDARY DATA

This will include data collection from various websites, books, Company brochures,
magazines, articles as a support to primary.

1.8 OPERATIONAL DEFINITIONS OF THE TREMS USED

MSG – Monosodium glutamate is the sodium salt of glutamic acid, one of the most abundant
naturally –occurring non-essential amino acids.MSG is found in tomatoes, parmesan cheese,
potatoes, mushrooms, and other vegetables and fruits.

LEAD – Lead is present in small amounts throughout the environment due to its natural
occurrence and its release into the environment by human activities. Exposure of large
amount of lead whether from food or any other source, can affect numerous body systems
including the central nervous system the kidneys and the immune system.

FSSAI – The Food Safety and Standards Authority of India is an agency of the Ministry of
Health and Family Welfare, Government of India. The FSSAI is responsible for protecting
and promoting public health through the regulation and supervision of food safety.

1.9 HISTORY

Early history
Julius Maggi (1846–1912) took over his father's mill business in Kemptthal, Switzerland, in
1869. Under his leadership, the business developed into one of the pioneers of industrial food
production, with the aim of improving the diet of working-class families through better
nutrient supply and faster preparation.

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In 1882, at a meeting of the Swiss “Non-Profit Society”, the doctor and factory inspector
Fridolin Schuler spoke about the miserable nutritional situation of the factory workers:
women workers no longer had enough time to cook for their families; cold meals or alcohol
often replaced warm meals; meals were served in factory canteens and were cheap but not
sufficiently nutritious. The consequences were malnutrition, stomach diseases, and high
infant mortality. Schuler advocated high-protein, easily digestible pulses/legumes. He
demanded they should be offered to the working class in a convenient form for quick
preparation and at a cheap price. The society turned to the Maggi company, among others.

Julius Maggi experimented for two years with different methods of mechanical and chemical
processing of legumes and different mixtures. The results were presented to the
representatives of the society on November 19, 1884. They approved the results and signed a
contract to exclusively recommend Maggi's legumes for a period of three years. Maggi in
turn guaranteed a fixed price and regular product controls for sales in Switzerland. However,
great success did not follow. The society was accused of representing the interests of a
private company. The Maggi company, on the other hand, had difficulties challenging other
suppliers of soup flour on the market, despite the support of the society.

Since 1884, Maggi has been offering flour made from protein-rich legumes, which can be
cooked quickly by being roasted beforehand. Maggi was the first to bring protein-rich legume
meals to the market, and followed up with a ready-made soup based on legume meals in
1886. After that Julius Maggi introduced bouillon concentrates, first in capsules, then in
cubes. In 1897, Julius Maggi founded the company Maggi GmbH in Singen, Germany.

From 1885 he brought nine industrially produced types of legume flour onto the market. At
the Swiss Culinary Art Exhibition in Zurich in 1885 he received the "First Class Diploma". In
1886, the first instant soups based on legume flour and Maggi seasoning followed as
competition for the meat extract invented by Justus von Liebig. The first warehouses and
branches abroad were founded, including in Singen in Baden in 1887. In order to obtain
additional capital for the planned further expansion, the company was converted into a public
limited company in 1889 with Julius Maggi as general director. In 1908 Maggi brought the
bouillon cube onto the market.

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Maggi introduced extensive social benefits that were unusual for the time, such as a canteen,
workers' housing, company health insurance, widow's and old-age pensions, and in 1906
Saturdays off. In a strike at the Singen plant in 1907, Julius Maggi successfully mediated,
accused the management of having lost "contact with the workforce" and suggested the
establishment of a "workers' committee", an early form of the works council. In 1912 Maggi
Singen signed the first collective agreement in the German food industry.

Company founder Julius Maggi lived mainly in Paris from 1902 and led the company to great
success with new products in France. The sales of pasteurized milk by the "Société laitière
Maggi" amounted to 60 million liters in 1912, and the sales of bouillon cubes with the name
KUB amounted to 6 million units a month in 1912.

Shortly after Julius Maggi's death in 1912, the company was converted into a holding
company, the Allgemeine MAGGI-Gesellschaft.

In 1947, following several changes in ownership and corporate structure, Maggi's holding
company merged with the Nestlé company to form Nestlé-Alimentana S.A., currently known
in its francophone home base as Nestlé S.A.

By 2020, as part of the Simply Good initiative, the domestic Maggi range is to be geared
more towards well-known and healthier ingredients and the salt content to be reduced.

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 CHAPTER 2

REVIEW OF LITERATURE

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2.1 REVIEW OF LITERATURE

Maggi was the leading brand in Indian market; the company had a definite market leadership
in the market. The promotional strategy and other marketing techniques of Maggi lead them
to this leadership. But now a day the Maggi is facing a serious problem which questioning the
future of the Maggi brands itself. The government of India banned Maggi noodles in Indian
market due to excess content of MSG and LEAD.FSSAI has ordered recall of all variants of
Maggi noodles from the market, terming them unsafe and hazardous for human consumption.
This is the current market problem facing in the industry the researches and experiments are
happening on this subject so there are no much more journals or articles relating to this topic.
Below I am trying to review some articles from different journals.

 BRITISH FOOD JOURNAL, "Critical issues in packaged food business", VOL.

107, AZIZ AHMED, NASER AHMED, AHMED SALMAN, (2005)

“The key trends fostering growth in developed packaged food markets are convenience,
functionality and indulgence. The real value of packaging is that the package is an integral
part of the product today. Besides, food products frequently require the general marketing
approaches and techniques applied to the marketing of other kinds of products and services.
Moreover, while going for product innovation, some critical success factors must be taken
into account. Furthermore, the objective of all quality assurance systems exercised by food
manufacturers and processors is to produce safe products that comply with manufacturers'
specifications, including the requirements established by governments. On top of that, the

24
companies that are the most progressive in the management of the supply chain are expected
to be the most successful and profitable. Last, but not least, companies should look forward to
emerging trends for business success. All these critical issues must be observed in a packaged
food business for superior performance”

The exterior look or packet of a product plays a vital role in attracting customer attention, so
the companies doing packed food business should give proper care on this matter.

 THE WALLSTREET JOURNALS, “Healthy Food Looks Serious: How

Children Interpret Packaged Food Products”, VOL. 34, CHARLENE D.
ELLIOTT, (2009).

“Fun food is an overlooked, but increasingly significant, category of food targeted to

children in the supermarket. These supermarket products emphasize foods’ play factor,
interactivity, artificiality, and general distance from “regular” foods: food is positioned as
“fun” and eating as “entertainment”. The children are highly attuned to fun foods and its
packaging, offering savvy, if flawed, interpretations of how to determine the healthfulness of
a packaged good. I argue that the symbolic positioning of children’s food as fun and fake
creates several roadblocks in the quest to promote wholesome food habits in children, and
that the thematic of fun has unintended consequences that require careful consideration.”

The children mostly prefer this kind of packed food. They are not aware about the quality of
these products but attracted in the packing taste etc…

 JOURNAL OF FOOD PRODUCTS MARKETING, “Public Health Nutrition”,

VOL.21, Dr WILMA WATER LANDER, (3, 2015)

“The lack of significant price difference between ultra- and less processed foods suggests
ultra-processed foods might provide time-poor consumers with more value for money. The
majority of packaged food available in New Zealand supermarkets is ultra-processed and so
also the unhealthiest. Most of the products were varieties of the same product. For example
311 breakfast cereal products were available, of which 92 (29.6 percent) were produced by
two food manufacturers, Ozone Organics and Kellogg’s. These findings highlight the need to
improve the supermarket food supply by reducing numbers of ultra-processed foods and
reformulating products to improve their nutritional profile”

25
This is an article about the global market there are two types of processed food ultra
processed and less processed foods.Ultra processed food are less healthier than less processed
food.so we need to go forward with less processed packed foods.

 ZENITH INTERNATIONAL JOURNAL OF BUSINESS ECONOMICS &

MANAGEMENT RESEARCH, “Rural consumer’s perception towards branded
packaged food”, VOL.4 (5), DR. VIJAYUDU GNANAMKONDA (Assistant Professor,
ICFAI Business School, Dontanapally, Shankarapally Road, Hyderabad), MAY (2014)

“The Packaged Food Market in India is a sunrise industry as growth in this sector in
the recent past has been phenomenal. Many new entrants are playing a vital role to harness
ever increasing market potential. Most new food companies, as well as the existing
companies, are in the process of entering into the rural market. With about 70% of total
population and increase in disposable income, rural markets are being liked on as the future
avenues for business growth. However food companies need to devise new and innovative
marketing strategies to penetrate rural markets”

India has wide rural market. The packed food industries are focusing to penetrate the rural
markets.

 BRITISH FOOD JOURNAL, “The Multi-Faceted Dimension Of Packaging:

Marketing Logistic Or Marketing tool?”, VOL. 107,BO RUNDH, (2005)

“Packages attract consumers attention to particular brand, enhance its image, and
influences consumers perceptions about product. Intermediaries of the package
communication message are component of the package: colour, form, size, images, graphics,
material, smell, and name of the product, brand, and country, information about product,
special offers, and instructions of usage, simplicity and ecology of the package, ergonomics,
and innovativeness. All these elements of the package play the function of communication.
Their transferable messages involve the evaluation of the product in qualitative, quantitative,
price, view, the formation of the product cognitive and sensorial expectations, the impact to
consumer emotions, mood and attention”.

26
Packet is a media of advertisement. The company should give all relevant data about the
product on packet it is a way of transferring messages about the product quality and other
specific details.

 JOURNAL OF FOOD PRODUCTS MARKETING , “Indian Consumer’s

Perception For Packaged Food And The Strategies Of Food And Grocery
Retailers In India-An Analysis”, VOL. 21 , SANJAY KUMAR, (2014)

“Indian consumers buying decisions about the packaged food is a changing one based
on the income level and demand level of customers. It is very difficult to reach everywhere in
Indian market because of the demographic variants. Retailer’s marketing strategies and
promotional activities will affect the packed food market”.

Indian consumers buying decision is based on the various factors like income level, demand,
and retailer strategies etc…and the demographic structure of India limits company’s access of
rural markets.

 THE WALLSTREET JOURNALS, “Nestle Recalls Maggi Noodles in India amid

Food Scare”, PREETIKA RANA, (JUNE 5, 2015).

“India, the world’s largest democracy, can be a challenge for high-profile global
brands. In 2003, Coca-Cola Co.’s quarterly sales in India fell 11% after activist groups
alleged that some of its soft drinks contained high levels of pesticides and insecticides. The
company denied the allegations and responded with its own aggressive marketing campaign.
The noodle recall in India comes at a tough time for Nestlé. In 2014, the Vevey, Switzerland-
based company recorded its slowest sales growth in five years as it wrestled with changing
consumer tastes in Europe and slower growth in China, its second largest market Like other
food companies, the maker of Nescafé instant coffee and KitKat chocolate bars has been
looking to developing economies like India for growth as demand softens in more-established
markets. In developed economies, sales of packaged food have been hit by low consumer
confidence as well as a shift toward fresh foods and other supposedly healthier alternatives.
In the U.S., for example, consumers increasingly shun processed foods”

27
The packed food industries considering Indian market and other developing country’s market
as a safe market, because the consumption rate showing increases every year. The trend in
developed countries are changing the people starting shun processed foods.

 NATIONAL JOURNAL OF COMMUNITY MEDICINE ,”A Study On

Consumer Awareness, Safety Perceptions &Practices About Food Preservatives
And Flavoring Agents Used In Packed /Canned Foods From South India”, VOL.
4, KUMAR, H N HARSHA JHA, ANSHU KUMAR, TANEJA,( July 2013).

“The increasing use of preservatives and flavoring agents has the potential to cause
health problem among the people. There are no published studies from India exploring the
awareness, safety perception, & practices about Food Preservatives (FPs) and Flavoring
Agents (FAs). Though there was awareness, the knowledge was inadequate. Unfavorable
practices were observed. The gaps in the knowledge and unhealthy practices need to be
addressed by public awareness campaign.”

The Indian customers are not aware about the ingredients about the products they are using.
There has no detailed studies happening in this area.

 ASIAN SOCIAL SCIENCE, “Indian Consumer Purchasing Behavior towards

Branded Processed Food”, VOL. 10,M. VIJAYA BASKAR1 & N. SUNDARAM ,
(May 30, 2014).

“The consumer purchase brands mostly on the parameters of trust and safety. These
two parameters build long term association with the brands. Even though there are other
factors people considers while choosing brands, trust and safety are become the vital
parameters to purchase brands. Brand endorsements, brand ethical concerns, brand attributes
are have little impact on purchase intention”

The consumers buying branded products because of safety and trust. They trust in the quality
of the branded products. So the customers are not willing to leave their brand until he gets
any negative from the side of their favorite brands.

28
 CHAPTER 3

DATA ANALYSIS AND

INTERPRETATION

29
 Introduction

Nestle India Limited (NIL) is the Indian affiliate of Nestle SA, a global FMCG company.
Nestle is a multinational corporation that has grown to become the world's largest food and
beverage company. Nestle owns and operates over 2000 brands in 196 countries around the
globe. Heinrich Nestle, the company's founder, founded the company in 1866 in Vevey,
Switzerland. It was placed No. 64 on the Fortune Global 500 in 2017 and No. 33 on the
Forbes Global 2000 list of the world's largest public corporations in 2016. Nestlé India's
business objective, shared by its management and staff, is to make and promote the
company's products to create value for consumers, shareholders, employees, and business
partners in the long run. Nestle India produces products of truly international quality under
internationally recognized brand names such as Nescafe, Maggi, Milkybar, Kit Kat, Bar-One,
MILKMAID, and NESTEA, as well as products for daily consumption and uses such as
Nestle Milk, Nestle Slim Milk, Nestle Dahi, and Nestle Jeera Raita.

Nestle Maggi is a culinary brand that was first introduced in Switzerland in 1886. Julius
Maggi was the one who came up with the idea. In 1947, this area was designated as a Nestlé
neighborhood. Instant noodles, sauces, soups, bouillons, and cooking aids are the most
common Maggi products. Maggi instant noodles are also famous among consumers due to
their delectable taste and simple preparation. Currently, many people use Nestle Maggi in
their food to make it delicious. The various products are well-liked in a specific market. It
was first introduced in India in 1983. Instant noodles have a stronghold on the Indian market.

30
Maggi 2-Minutes Noodles is the brand name for this product. It's still one of the most popular
instant noodles brands, and it's still the market leader. Nestle has become the product that
everyone requires to meet their daily demands. Nestle Maggi is inextricably linked to Nestle's
marketing strategy, which is critical in garnering public attention.

SCOPE

This paper aims to examine Nestle Maggi as a brand in-depth from a marketing
perspective. This paper examines Maggi's marketing mix to gain a better understanding of the
company. This study also includes a complete SWOT analysis. The paper presents the
perspectives of management gurus and executives to gain a better understanding of their
perspectives on the brand. The paper also covers the controversy Maggi was involved in,
which resulted in to ban of Maggi noodles and the impact of Covid-19 on the brand. Finally,
it makes suggestions and recommendations that Nestle Maggi could use to maintain its
successful market position in the face of a changing environment.

Product Strategy

Maggi is a well-known food brand that Nestle owns. Maggi offers a vast range of items,
with a varied selection for each country. Maggi instant noodles, Maggi soups, sauces,
seasonings, and bouillons are among the company's most popular items.Instant noodles come
in a wide range of flavors and are pretty popular around the world. 2- Minute Noodles,
Chicken Noodles, Vegetable Multigrain Noodles, Cuppa Mania, Hot Heads Noodles, Oats
Noodles, and Atta Noodles are the most popular Maggi items in this category. This is the
cornerstone of Maggi's product strategy in the marketing mix. Maggi soups include a wide
range of dehydrated soup mixes and products, which vary with the countries it is present.
Maggi can be found in any country where it does business. Seasonings are spice mixtures that
also serve as cooking assistance. It's sold in India under the names Magic Masala and Bhuna
Masala. Maggi sauces are another popular genre, with flavors varying by country. Soy sauce
is a widely used condiment all over the world. Apart from that, several types are accessible in
India, such as Maggi Tamarind, Maggi Hot & Sweet, and Rich Tomato. During the
lockdown, sales of ready-to-cook foods increased dramatically.

Pricing Strategy

31
 To enter different markets around the world, Maggi adopts a cost-based pricing strategy.
The enormous volume of products compensates for the competitive rates. This demonstrates
that competition and cost are the two most important aspects of Maggi's marketing mix
pricing strategy. Due to growing prices in several countries, Maggi has wisely begun cutting
the amount in order to maintain the same rates. Nestle aims to gain as much market share as
possible by offering low pricing and maintaining high-quality standards. Because Maggi
attempts to appeal to people from all walks of life, it has a range of prices in different areas
and nations. Its services are also accessible in several packages, allowing customers to
purchase what they need. Maggi has recently introduced new items such as the cup line and
Hot Heads noodles, which are aimed at those with higher income levels and are therefore
priced higher.

Because of Nestle's substantial presence, Maggi products are widely available. Producers
to Distributors to Wholesalers to Retailers to Consumers is Nestlé's distribution model. This
is due to the fact that it is ingested in large numbers yet in small amounts. It has risen to the
top because of its extensive reach, which includes rural areas and small towns. Maggi items
are

sent directly from independent companies to Carry and Forward Agencies, which keep
them in huge warehouses before passing them on to wholesalers in the amounts required.
These volumes are subsequently supplied to retailers or to end customers via hypermarkets,
local enterprises, and even its own corporate kiosks. Convenience stores and small
supermarkets are examples of retailers.

Promotion & Advertising Strategy To raise brand awareness and recall, Maggi has relied on
advertising as its primary promotional technique. Initially, it was aimed at children and
working mothers with limited time to make meals. The ads primarily aired on children's
networks, with catchy taglines like "Bas 2-minute" and the jingle "Maggi, Maggi, Maggi." It
created a voice-over ad to evoke a sentimental sense among customers about their Maggi
journey on its 25th anniversary. It has also employed the "Miss you Maggi" ad campaign to

32
reclaim lost customers following India's Maggi ban, which was one of the greatest
ban/controversies of all time. It has attached different complimentary freebies to its products
as sales promotional methods over the years, such as free samples,

amusing books, and toys. Discounts and Scratch and Win schemes have also been offered by
Maggi. It also used a slew of celebrities as brand ambassadors. Users are also active on social
networking platforms such as Facebook, Instagram, and others. This completes Maggi's
marketing mix.

SWOT ANALYSIS

Maggi's increasing popularity has produced a slew of related items, resulting in the
creation of a Maggi-branded umbrella company. A corporation with more strengths than
weaknesses is almost certain to exist. SWOT Analysis is a tried-and-true management tool
that helps companies like NESTLE examine the Maggi market and its success in comparison
to competitors and the industry. For many years, Maggi has been one of the most popular
foods and beverage brands. Maggi is one of Nestle's most well-known brands in the packaged
food category. Let’s delve deeper to understand the SWOT Analysis of Maggi. Strengths
Maggi has a competitive advantage over its competitors in several product categories due to
its existence under the Maggi umbrella mark with vast SKUs (Stock keeping unit). Maggi has
become a trailblazer in changing people's eating patterns and accepting noodles as a simple
meal. Despite the fact that the market currently comprises a number of local and national
businesses, Maggi Retains remains the market leader. The brand has a high brand pull. The
organization is able to develop strong consumer ties as a result of distinctive promotions and
branding efforts. Maggi is available on the market thanks to a well-established and robust
parent business (Nestle) sales chain. Maggi is becoming popular at restaurants and roadside
stalls, also, thanks to the efforts of canteens. It also is benefiting from Nestle's long history
and strong financial position in the market. Maggi Noodles acts as the most substantial
contributor to the brand’s strength as Maggi is the market leader in the high-brand loyalty
noodle sector. The fantastic attention that Maggi receives elevates its brand to new heights. In
addition to instant noodles, Maggi sells soups, Masala, sauces, and other items. Noodles are a
favorite among teenagers, young couples, and young families since they are simple to cook
and ready to eat. Also, Maggi has a lot of exposure thanks to TV commercials, print ads,
social media, and online ads. The childhood recall value for Maggi again acts as an essential
factor.

33
WEAKNESSES

Risk of Overdependence: The company is focusing on the risk of overdependence on Maggi

Noodles, which accounts for 57 percent of the brand's income in 2014, despite the fact that
their market share has declined dramatically (from 84 percent in 2012 to 63 percent in 2014).
Despite the fact that there are more and more competitors, the market is still growing.

Also, As the educated class becomes more health-conscious, awareness of the ill effects of
Maggi is growing.

Nestle failed a laboratory test in India in 2017, resulting in the Maggi Noodles issue. This
sparked a boycott of Nestle, which resulted in the company losing its market share in the
country. In the Noodles packets, Nestle claimed that there was no additional MSG. After
testing, however, 1000 times more lead was discovered in the product.

OPPORTUNITIES

Maggi can increase its product categories by branching out into corn flakes, chips, and
pickles (Although it failed in 2003, now with the presence of local & national players in this
product category, the company can reap the benefits).

Although it is mostly used by the educated class to save time, what if the long-potential rural
markets can also be reached with novel techniques relating to customer involvement with the
brand? The brand should invest in the same.

Also, It can also target restaurant chains by providing some personalized or unique products
to make them more of a part of the customers' daily lives. The brand's expansion will be
aided by new flavors, packaging, and existing customers. Maggi can partner with schools,
colleges, hotels, and other businesses to deliver quick food snacks. It can also invest in R&D
for Healthy products, which can cater to a new segment in the market.

THREATS

34
Both local and national players are putting up a fight. Nestle Maggi is finding it difficult to
compete in a market where rival products are readily available. Increased competition may
cause Maggi's market share to shrink.

The spread of adverse effects of Maggi noodles via the internet and social media poses a
threat to Maggi's survival. Because a decrease in the Maggi brand's perceived value as a
result of its Noodles product category might have an impact on the brand as a whole, Maggi's
sales will be influenced by price battles with competing noodle companies.

Maggi's operations can be hampered by strict policy and food regulatory regulations. Also,
People turning more health-conscious could be a big threat.

CONTROVERSY & MAGGI BAN

Nestle, the world's largest consumer food and beverage business, had come under fire when it
was revealed in an internal presentation that the majority of its mainstream food and beverage
portfolio is unhealthy.

In 2014, food safety officials in Uttar Pradesh's Barabanki district stated that samples of
Maggi Noodles contained high levels of monosodium glutamate (MSG) as well as lead levels
over the allowed limit. Maggi Noodles had no additional MSG at the time, according to the
labeling on the packs.

Nestle, on the other hand, maintained in its first official statement following the
allegations that there was no instruction to recall Maggi Noodles and that they were safe to
eat. However, when the Food Safety and Standards Authority of India (FSSAI) requested
Nestle to recall Maggi Noodles, the uproar intensified.

Nestle had no choice but to pull the popular snack from store shelves. Nearly 38,000
tonnes of Maggi Noodles were recalled and destroyed from retail shops across the country
between June 5 and September 1, 2015. Maggi's market share in India has decreased from
80% to nil.

Nestle India's Maggi Noodles returned to shelves in November 2015, five months after
the brand was forced to withdraw from the market due to safety concerns. It took nearly
another year for Maggi to reappear in stores across the country. They did, however, make a
strong recovery.

35
 Source: Capitaline, Mint Research

IMPACT OF COVID-19 ON NESTLE MAGGI

During the coronavirus outbreak, Maggi saw a huge increase in sales. Maggi sales
increased by much to 25% compared to pre-COVID levels as shoppers under lockdown
stocked up on the instant noodle brand.

According to The Economic Times, several Kirana shops have started carrying the 1 kg
boxes with 24 Maggi noodle cakes because smaller packs have gone out. During the pre-
lockdown period, demand for Maggi increased by 20-25 percent.

Source: Nestle India Annual Report 2019

"Enormous efforts have been put in by teams across factories in the most arduous situation.
The mission of my team was inspired to rise to a national cause and provide an essential
brand at that time," said Suresh Narayanan, Managing Director of Nestle India. Nestle Maggi

36
is up in the game with huge profits, and they faced a lesser advantage during this pandemic.
The Indian instant noodles market is highly consolidated, with the top 5 companies holding
more than 70% of the market share. Companies have been even coming up with various kinds
of promotion strategies, such as price pay off, gifts, etc., to attract consumers' attention. But,
The prominent player in the market is Nestle Maggi.

After going through various papers, journals, and research papers, the following
suggestions should be followed by the brand for maintaining its successful market position in
the face of a changing environment. The brand should focus on segments with age groups of
25-35 and above in order to generate maximum profit leverage. The key to success is
advertising. Targeting these sectors will improve the company's profit margins while also
enhancing Maggi's brand image.

The brand should market its products by displaying health-related qualities such as
nutritional values, vitamin percentages, and protein content, among other things. Customers
will perceive the products as healthy as a result of this. The brand can also invest in R&D for
healthy alternatives.

Maggi's market share would increase if it ventured into other food categories such as
chips, chocolates, and other foods under its exclusive brand name. Also, marketing &
advertising would play an important role.

Nestlé Maggi's goal should be to make and promote its products in a way that creates
long-term value for consumers, shareholders, employees, and business partners.

The brand needs to constantly work to better understand modern India's changing
lifestyles and anticipate consumer needs in order to provide convenience, flavor, nutrition,
and wellbeing through its products.

37
38
 DATA ANALYSIS

DATA ANALYSIS

1. Which age group do you belong?

S.R NO AGE PERCENTAGE

1 20-29 65.6%

2 30-39 16.4%

3 40-49 9.8%
4 Above 50 8.2%

39
ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 20-29 age are response 65.6%, 30-
39 Age are response 16.4%, 40-49 Age are response 9.8%, Above 50 Age are response 8.2%.

2. What is your professional Status?

S.R NO WHAT IS YOUR PERCENTAGE

PROFESSIONAL STATUS
1 Student 37.7%

2 Working Professional 23%

3 Unemployed 23%
4 Employee 16.4%

40
ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, professional Status Student are
response 37.7%, professional Status Working Professional are response 23%, professional

Status are response 23%, professional Status Employee are response 16.4%.

3. What is your Marital Status?

S.R NO WHAT IS YOUR MARITAL PERCENTAGE

STATUS
1 Married 39.3%

2 Unmarried 52.5%

41
 3 Widow 8.2%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, Married Status are response 39.3%,
Unmarried Status are response 52.5%, Widow Status are response 8.2%.

4. Are you a customer of Maggi?

S.R NO ARE YOU A CUSTOMER OF PERCENTAGE

MAGGI
1 Yes 67.2%

2 No 32.8%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 67.2% are Yes Maggi Customer and
32.8% are No Maggi Customer

42
5. What Comes first in your mind when you hear the word Maggi?

S.R No WHAT COMES FIRST IN PERCENTAGE

YOUR MIND WHEN YOU
HEAR THE WORD MAGGI
1 Noodles 63.9%

2 Pasta 19.7%

3 Sauce 6.6%

4 Soup 9.8%

43
ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 63.9% People are Hear Word First
Noodles, 19.7% People are Hear Word Pasta, 6.6% People are Hear Word Sauce, 9.8%
People are Hear Word Soup.

6. On a Scale of 1 to 5 rate Maggi on the Following parameters?

S.R No ON A SCALE OF 1 TO 5 RATE PERCENTAGE

MAGGI ON THE FOLLOWING
PARAMETERS
1 Taste 63.9%

2 Hygiene 13.1%

3 Variety/ Flavour 5%

4 Availability 9.8%

5 Packaging 8.2%

44
ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 63.9% People are Hear Word First
Noodles, 19.7% People are Hear Word Pasta, 6.6% People are Hear Word Sauce, 9.8%
People are Hear Word Soup.

7. What is the brand that comes to your mind when we say the word Maggi

WHAT IS THE BRAND THAT

S.R No COMES TO YOUR MIND PERCENTAGE
WHEN WE SAY THE WORD
MAGGI
1 Noodles 49.2%

2 Fast Food 29.5%

3 Snacks 9.8%

4 None of these 49.2

45
ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 49.2% People Say Noodles, 29.5%
people Say Fast Food, 11.5% People Say None of these and 9.8% People Say Snacks.

8. How do you Perceive Maggi Product?

S.R No HOW DO YOU PERCEIVE PERCENTAGE

MAGGI PRODUCT
1 Taste 54.1%

2 Hygiene 8.2%

3 Instant 24.6%

46
 4 Others 13.1%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 54.1% People Like Maggi Taste,
24.6% People Say Maggi can make Instant, 8.2% people are Say Maggi is Hygiene and Other
13.1% People are None of these.

9. Maggi Product Hygienic Noodles?

S.R No MAGGI PRODUCT HYGIENIC PERCENTAGE

NOODLES
1 Agree 57.4%

2 Neutral 26.2%

3 Disagree 16.4%

47
ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 57.4% People are Agree, 26.2%
People are Neutral, 16.4% People are Disagree.

10. Maggi Product is very Tasty?

S.R No MAGGI PRODUCT IS VERY PERCENTAGE

TASTY
1 Agree 77%

2 Neutral 8.2%

3 Disagree 14.8%

48
ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 77% People are Agree, 8.2% People
are Neutral, 14.8% People are Disagree.

11. People eat Maggi Noodles regularly?

S.R No PEOPLE EAT MAGGI PERCENTAGE

NOODLES REGULARLY
1 Agree 41%

2 Neutral 18%

49
 3 Disagree 41%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 41% People are Agree, 18% People
are Neutral, 41% People are Disagree.

12. The Price of Maggi Noodles is low?

S.R No THE PRICE OF MAGGI PERCENTAGE

NOODLES IS LOW
1 Agree 78.7%

2 Neutral 14.8%

50
 3 Disagree 6.6%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 41% People are Agree, 18% People
are Neutral, 41% People are Disagree.

13. With what Product would you associate the brand Maggi?

S.R No WITH WHAT PRODUCT PERCENTAGE

WOULD YOU ASSOCIATE
THE BRAND MAGGI

51
 1 Ketchup 13.1%

2 Noodles 24.6%

3 Soup 11.5%

4 Masala 50.8%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 50.8% Associate with Masala
People are Say, 24.6% Associate with Noodles People are Say, 11.5% Associate with Soup
People are Say, 13.1% Associate with Ketchup People are Say.

14. Maggi Should Change their Noodles Taste.

S.R No MAGGI SHOULD CHANGE PERCENTAGE

THEIR NOODLES TASTE

52
 1 Agree 37.7%

2 Neutral 21.3%

3 Disagree 41%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 37.7% People are Agree to Change
Maggie Taste, 21.3% People are Neutral and Mostly 41% People are Disagree.

15. Maggi Noodle is always available in our Nearest Shop

53
 S.R No MAGGI NOODLE IS ALWAYS PERCENTAGE
AVAILABLE IN OUR
NEAREST SHOP
1 Agree 90.2%

2 Neutral 4.9%

3 Disagree 4.9%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, mostly 90.2% People are Agree,
4.9% People are Neutral and 4.9% People are Disagree.

16. Maggi Noodle Provide Various Offer.

54
 S.R No MAGGI NOODLE PROVIDE PERCENTAGE
VARIOUS OFFER
1 Agree 31.1%

2 Neutral 24.6%

3 Disagree 44.3%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 31.1% People are Agree, 24.6%
People are Neutral and 44.3% People are Disagree.

55
 17. Maggie Noodles Provide attractive advertising

S.R No MAGGIE NOODLES PROVIDE PERCENTAGE

ATTRACTIVE ADVERTISING
1 Agree 83.6%

2 Neutral 11.5%

3 Disagree 4.9%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, mostly 83.6% People are Agree,
11.5% People are Neutral and 4.9% People are Disagree.

56
 18. Which Maggie Product in Noodles category do you regularly buy?

S.R No WHICH MAGGIE PRODUCT PERCENTAGE

IN NOODLES CATEGORY DO
YOU REGULARLY BUY
1 Maggi Masala 11.5%

2 Maggi Vegetable attar Noodles 8.2%

3 Maggi Dal Atta noodles 9.8%

4 Maggi Rice Noodles Mania 8.2%

5 Others 11.5%

6 Maggie Masala 50.8%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 50.8% People are Buying Maggie
Masala, 8.2% People are Buying Maggi Vegetable Attar Noodles, 9.8% People are Buying
Maggi Dal Atta noodles, 8.2% People are Buying Maggi Rice Noodles Mania, 11.5% People
are Buying Maggi Masala, and 11.5% People are Buying Others Products.

57
19. Maggi Noodles for all class of People

S.R No MAGGI NOODLES FOR ALL PERCENTAGE

CLASS OF PEOPLE
1 Agree 86.9%

2 Neutral 9.8%

3 Disagree 3.3%

58
ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, mostly 86.9% People are Agree,
9.8% People are Neutral and 3.3% People are Disagree.

20. You Came to know about Maggi from

S.R No YOU CAME TO KNOW ABOUT PERCENTAGE

MAGGI FROM
1 Newspaper

2 Radio

3 T.V

4 Friends

5 Others

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ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 63.9% People are know from T.V,
13.1% People are know from Friends, 8.2% People are know from Radio, 4.9% People are
know from Newspaper, 9.8% People are Know from other source.

21. Do you recall any of the TV advertisement of Maggi?

S.R No DO YOU RECALL ANY OF PERCENTAGE

THE TV ADVERTISEMENT OF
MAGGI
1 Yes 62.3%

2 No 23%

3 Maybe 14.8%

ANALYSIS AND INTERPRETATION

60
Above table and graph shows that out of 61 respondents, mostly 62.3% People are Say Yes,
23% People are Say No and 14.8% People are Say Maybe.

22. Are you satisfy with the current price and packing size variants of Maggi
product?

S.R No ARE YOU SATISFY WITH THE PERCENTAGE

CURRENT PRICE AND PACKING
SIZE VARIANTS OF MAGGI
PRODUCT
1 Yes 57.4%

2 No 21.3%

3 Maybe 21.3%

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ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, mostly 57.4% People are Say Yes,
21.3% People are Say No and 21.3% People are Say Maybe.

23. How Frequently do you consume Maggi Noodles?

S.R No HOW FREQUENTLY DO YOU PERCENTAGE

CONSUME MAGGI NOODLES
1 Daily 9.8%

2 Thrice a week 23%

3 Once a week 29.5%

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 4 Rarely 37.7%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 37.7% People are Consume Maggi
Rarely, 29.5% People are Consume Maggi Once a week, 23% People are Consume Maggi
Thrice a Week, 9.8% People are Consume Maggi Daily.

24. Effects of Advertisement on purchase decision.

S.R No EFFECTS OF ADVERTISEMENT ON PERCENTAGE

PURCHASE DECISION
1 Highly effective 18%

2 Good 32.8%

3 Average 32.8%

4 Ineffective 16.4%

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ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 18% People are Highly effective,
32.8% People are Good effect, 32.8% People are Average effect on purchasing Decision of

Maggi, 16.4% People are Ineffective on purchasing Decision of Maggi.

25. Which aspect of Maggi Noodles need improvement?

S.R No WHICH ASPECT OF MAGGI PERCENTAGE

NOODLES NEED IMPROVEMENT
1 Price 32.8%

2 Quality 18%

3 Quantity 26.2%

4 Taste 23%

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ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, 32.8% People are Saying
Improvement in Price, 18% People are Saying Improvement in Quality, 26.2% People are
Saying Improvement in Quantity, 32.8% People are Saying Improvement in Taste.

26. Which of these packets of Maggi noodles you purchase mostly?

S.R No WHICH OF THESE PACKETS OF PERCENTAGE

MAGGI NOODLES YOU
PURCHASE MOSTLY
1 Single Pack 45.9%

2 Double Pack 21.3%

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 3 Family Pack 27.9%

4 Mega Pack 4.9%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, mostly 45.9% People are Purchase
Single Pack, 21.3% People are Purchase Double Pack, 27.9% People are Purchase Family
Pack, 4.9% People are Purchase Mega Pack.

27. Mostly you Consume Maggi Noodles.

S.R No MOSTLY YOU CONSUME PERCENTAGE

MAGGI NOODLES
1 In groups with your friends 16.4%

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 2 With your family 41%

3 By yourself 42.6%

ANALYSIS AND INTERPRETATION

Above table and graph shows that out of 61 respondents, Mostly 42.6% By Yourself
Consume, 41% Consume with Family, 16.4% People are consume with Friends Group.

67
 CHAPTER 4

SUMMARY OF FINDINGS,
CONCLUSION & SUGGESTIONS

4.1 FINDINGS

68
 Above table and graph shows that out of 61 respondents, 20-29 age are response
65.6%, 30-39 Age are response 16.4%, 40-49 Age are response 9.8%, Above 50 Age
are response 8.2%.

 Above table and graph shows that out of 61 respondents, professional Status Student
are response 37.7%, professional Status Working Professional are response 23%,
professional Status are response 23%, professional Status Employee are response
16.4%.

 Above table and graph shows that out of 61 respondents, Married Status are response
39.3%, Unmarried Status are response 52.5%, Widow Status are response 8.2%.

 4.Above table and graph shows that out of 61 respondents, 67.2% are Yes Maggi
Customer and 32.8% are No Maggi Customer.

 Above table and graph shows that out of 61 respondents, 63.9% People are Hear
Word First Noodles, 19.7% People are Hear Word Pasta, 6.6% People are Hear Word
Sauce, 9.8% People are Hear Word Soup.

 Above table and graph shows that out of 61 respondents, 63.9% People are Hear
Word First Noodles, 19.7% People are Hear Word Pasta, 6.6% People are Hear Word
Sauce, 9.8% People are Hear Word Soup.

 Above table and graph shows that out of 61 respondents, 49.2% People Say Noodles,
29.5% people Say Fast Food, 11.5% People Say None of these and 9.8% People Say
Snacks.

 Above table and graph shows that out of 61 respondents, 54.1% People Like Maggi
Taste, 24.6% People Say Maggi can make Instant, 8.2% people are Say Maggi is
Hygiene and Other 13.1% People are None of these.

 Above table and graph shows that out of 61 respondents, 57.4% People are Agree,
26.2% People are Neutral, 16.4% People are Disagree.

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 Above table and graph shows that out of 61 respondents, 77% People are Agree, 8.2%
People are Neutral, 14.8% People are Disagree.

 Above table and graph shows that out of 61 respondents, 41% People are Agree, 18%
People are Neutral, 41% People are Disagree.

 Above table and graph shows that out of 61 respondents, 41% People are Agree, 18%
People are Neutral, 41% People are Disagree.

 Above table and graph shows that out of 61 respondents, 50.8% Associate with
Masala People are Say, 24.6% Associate with Noodles People are Say, 11.5%
Associate with Soup People are Say, 13.1% Associate with Ketchup People are Say.

 Above table and graph shows that out of 61 respondents, 37.7% People are Agree to
Change Maggie Taste, 21.3% People are Neutral and Mostly 41% People are
Disagree.

 Above table and graph shows that out of 61 respondents, mostly 90.2% People are
Agree, 4.9% People are Neutral and 4.9% People are Disagree.

 Above table and graph shows that out of 61 respondents, 31.1% People are Agree,
24.6% People are Neutral and 44.3% People are Disagree.

 Above table and graph shows that out of 61 respondents, mostly 83.6% People are
Agree, 11.5% People are Neutral and 4.9% People are Disagree.

 Above table and graph shows that out of 61 respondents, 50.8% People are Buying
Maggie Masala, 8.2% People are Buying Maggi Vegetable Attar Noodles, 9.8%
People are Buying Maggi Dal Atta noodles, 8.2% People are Buying Maggi Rice
Noodles Mania, 11.5% People are Buying Maggi Masala, and 11.5% People are
Buying Others Products.

 Above table and graph shows that out of 61 respondents, mostly 86.9% People are
Agree, 9.8% People are Neutral and 3.3% People are Disagree.

70
 Above table and graph shows that out of 61 respondents, 63.9% People are know
from T.V, 13.1% People are know from Friends, 8.2% People are know from Radio,
4.9% People are know from Newspaper, 9.8% People are Know from other source.

 Above table and graph shows that out of 61 respondents, mostly 62.3% People are
Say Yes, 23% People are Say No and 14.8% People are Say Maybe.

 Above table and graph shows that out of 61 respondents, mostly 57.4% People are
Say Yes, 21.3% People are Say No and 21.3% People are Say Maybe.

 Above table and graph shows that out of 61 respondents, 37.7% People are Consume
Maggi Rarely, 29.5% People are Consume Maggi Once a week, 23% People are
Consume Maggi Thrice a Week, 9.8% People are Consume Maggi Daily.

 Above table and graph shows that out of 61 respondents, 18% People are Highly
effective, 32.8% People are Good effect, 32.8% People are Average effect on
purchasing Decision of Maggi, 16.4% People are Ineffective on purchasing Decision
of Maggi.

 Above table and graph shows that out of 61 respondents, 32.8% People are Saying
Improvement in Price, 18% People are Saying Improvement in Quality, 26.2% People
are Saying Improvement in Quantity, 32.8% People are Saying Improvement in Taste.

 Above table and graph shows that out of 61 respondents, mostly 45.9% People are
Purchase Single Pack, 21.3% People are Purchase Double Pack, 27.9% People are
Purchase Family Pack, 4.9% People are Purchase Mega Pack.

 Above table and graph shows that out of 61 respondents, mostly 42.6% By Yourself
Consume, 41% Consume with Family, 16.4% People are consume with Friends
Group.

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4.2 CONCLUSION:

 Maggi is the premium brand of Nestle, had started its operation in late 1982.
This report has shown that the innovation road map for the organization by
faithfully following the mv is model of innovation. We based the innovation
on research of the future of the industry and carried out an innovation road
map for Maggie on how to innovate for healthier products and services. MVIS
will help the organization to identify the gap between its current and future
innovation trends and design a different experiment that reveals the future
of innovation.

 After that the organization has a handful set of people who are
responsible to bring innovation change within the organization
through the organizational process, then the organization should have
to eliminate all the zombie projects and prepare a complete checklist
which helps the organization to make a change in timely an effective
manner without any delays. Zombie projects affect the
effectiveness and performance of the organization, so the
organization should have to eliminate all the zombie projects.

 The company should have to implement oversight development within the

organization as it will help the organization to improve the effectiveness,
which increases the accountability and makes policies and procedure for
the organization.

 Maggi should have to build complete organizational development audit to

check the reliability and accuracy of the innovational process. If the
innovation went successfully for the organization, it will also help
the organization to improve its customers base, open many other opportunities
for future growth, increase the company's revenue as well as profit, will help it to
make at the top position in the firm.

 Hence we saw how Maggi went through the pool of controversies and how
government imposed the ban that lead to millions of loss to the company in

72
 addition, it also disheartened the Indian consumers who had been consuming
Maggi since their early childhood days and hence held an emotional attachment
with the Brand Maggi.

 Now as the Maggi plans to come back after a few more tests that needs to be
passed over the next 6 weeks given by the Bombay high court, market is in a state
of dilemma as to the marketing strategy which might be adopted by the Maggi to
reposition its brand in the minds of the consumer and gain the early market share
of 80%.

 Beholding what Nestle actually did and what it should have done, it is evident that
there was some sort of communication crisis between the Maggi and the
consumers at the time of controversies which needs to be corrected. Also some
degree of misapprehension between the government and the Maggi needs to be
rectified. In order to continue what Nestle enjoyed for years i.e. huge brand
loyalty and brand connect, certain corrective measures will have to be taken care
of.

 It should come back into the market as soon as the issue is fully resolved with a
better quality product which meets the standards and start enjoying its position in
the Indian market again.

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4.3 SUGGESTIONS AND RECOMMENDATION

 I am suggesting that the company should form a separate Quality Administration

Committee in each production unit to ensure the quality of every product.

 The company should strengthen the social net working system of the company and

customer relationship.

 The companies should open its own various outlets throughout the country with

customer information centers.

 Maggi should introduce an alternative snack in the ready to cook market which will

help the relaunching of Maggi in a new format.

 Should launch new advertisement campaigns (TV, RADIO, etc...) with credible stars.

 Should strengthen the distribution channels of the company especially in rural areas.

 Conduct Promotional campaigns at schools, colleges, and towns where people are

more than 1000.

 The customers should check the ingredients and other relevant information before

purchasing a product.

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APPENDICES

75
 QUESTIONNAIRE

PERSONAL DETAILS

Name :

Occupation :

Age :

Education Qualification :

GENERAL DETAILS

1. AGE

 20-29
 30-39
 40-49
 ABOVE 50

2. WHAT IS YOUR PROFESSIONAL STATUS?

 STUDENT
 WORKING PROFESSIONAL
 UNEMPLOYED
 EMPLOYEE

3. WHAT IS YOUR MARITAL STATUS?

 MARRIED
 UNMARRIED
 WIDOW

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4. ARE YOU A CUSTOMER OF MAGGI?
 YES
 NO

5. WHAT COMES FIRST IN YOUR MIND WHEN YOU HEAR THE WORD
MAGGI
 NOODLES
 PASTA
 SAUCE
 SOUP

6. ON A SCALE OF 1 TO 5 RATE MAGGI ON THE FOLLOWING PARAMETERS

 TASTE
 HYGIENE
 VARIETY/ FLAVOUR
 AVAILABILITY
 PACKAGING

7. WHAT IS THE BRAND THAT COMES TO YOUR MIND WHEN WE SAY THE
WORD MAGGI?

 NOODLES
 FAST FOOD
 SNACKS
 NONE OF THESE

8. HOW DO YOU PERCEIVE MAGGI PRODUCT?

 TASTE
 HYGIENE
 INSTANT
 OTHERS

9. MAGGI PRODUCT HYGIENIC NOODLES

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 AGREE
 NEUTRAL
 DISAGREE

10. MAGGI PRODUCT IS VERY TASTY

 AGREE
 NEUTRAL
 DISAGREE

11. PEOPLE EAT MAGGI NOODLES REGULARLY

 AGREE
 NEUTRAL
 DISAGREE

12. THE PRICE OF MAGGI NOODLES IS LOW

 AGREE
 NEUTRAL
 DISAGREE

13. WITH WHAT PRODUCT WOULD YOU ASSOCIATE THE BRAND MAGGI?

 KETCHUP
 NOODLES
 SOUP
 MASALA

14. MAGGI SHOULD CHANGE THEIR NOODLES TASTE.

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 AGREE
 NEUTRAL
 DISAGREE

15. MAGGI NOODLE IS ALWAYS AVAILABLE IN OUR NEAREST SHOP

 AGREE
 NEUTRAL
 DISAGREE

16. MAGGI NOODLE PROVIDE VARIOUS OFFER

 AGREE
 NEUTRAL
 DISAGREE

17. MAGGIE NOODLES PROVIDE ATTRACTIVE ADVERTISING

 AGREE
 NEUTRAL
 DISAGREE

18. WHICH MAGGIE PRODUCT IN NOODLES CATEGORY DO YOU

REGULARLY BUY

 MAGGI MASALA
 MAGGI VEGETABLE ATTAR NOODLES
 MAGGI DAL ATTA NOODLES
 MAGGI RICE NOODLES MANIA
 OTHERS
 MAGGIE MASALA

19. MAGGI NOODLES FOR ALL CLASS OF PEOPLE

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 AGREE
 NEUTRAL
 DISAGREE

20. YOU CAME TO KNOW ABOUT MAGGI FROM

 NEWSPAPER
 RADIO
 T.V
 FRIENDS
 OTHERS

21. DO YOU RECALL ANY OF THE TV ADVERTISEMENT OF MAGGI?

 YES
 NO
 MAYBE

22. ARE YOU SATISFY WITH THE CURRENT PRICE AND PACKING SIZE
VARIANTS OF MAGGI PRODUCT?

 YES
 NO
 MAYBE

23. HOW FREQUENTLY DO YOU CONSUME MAGGI NOODLES?

 DAILY
 THRICE A WEEK
 ONCE A WEEK
 RARELY

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24. EFFECTS OF ADVERTISEMENT ON PURCHASE DECISION

 HIGHLY EFFECTIVE
 GOOD
 AVERAGE
 INEFFECTIVE

25. WHICH ASPECT OF MAGGI NOODLES NEED IMPROVEMENT

 PRICE
 QUALITY
 QUANTITY
 TASTE

26. WHICH OF THESE PACKETS OF MAGGI NOODLES YOU PURCHASE

MOSTLY?

 SINGLE PACK
 DOUBLE PACK
 FAMILY PACK
 MEGA PACK

27. MOSTLY YOU CONSUME MAGGI NOODLES

 IN GROUPS WITH YOUR FRIENDS

 WITH YOUR FAMILY

 BY YOURSELF

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BIBLIOGRAPHY

82
BIBLIOGRAPHY

BOOKS REFFERED

 LA STRATEGIE NESTLE (NESTLE STRATEGY), HELMUT MAUCHER.

 FAST FOOD: ROADSIDE RESTAURANTS IN THE AUTOMOBILE AGE,

JAKLE, JOHN (1999).

 DEVELOPMENT OF A MEASURE OF THE MOTIVES, UNDERLYING THE

SELECTION OF FOOD: THE FOOD CHOICE QUESTIONNAIRE, APPETITE,
ANDREW STEPTOE & TESSA M. POLLARD, (1995),

JOURNAL

 THE WALLSTREET JOURNAL.

 BRITISH FOOD JOURNAL
 JOURNAL OF FOOD PRODUCTS MARKETING

WEBSITES

 https://instantnoodles.org/
 https://www.wikipedia.org/
 https://www.google.com/
 https://www.nestle.in/

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