INTRODUCTION OF NESTLE

Nestle was formed in 1905 by the merger of the Anglo-swiss milk company, established
in 1866 by brothers George Page and Charles Page and Farine Lactee Henri Nestle.

Nestle product includes Baby food, medical food, bottled water, breakfast cereals, coffee
and tea, confectionery, dairy products, ice cream, frozen food, pet foods and snacks.

Founded:
Anglo-Swiss condensed Milk Company (1866)
Farine Lactee Henri Nestle (1867)
Nestle and Aglo Swiss (1905)

Founder:
Henri nestle, Charles Page,
George Page

Head quarters: Vevey, Vaud, Switzerland .

Nestle has 447 factories, operates in 194 countries and employs around 339000 people.

INTRODUCTION OF MAGGI

Nestle India ltd, the Indian subsidiary of the global FMCG major, Nestle SA, introduced
in India in 1982, with its launch of Maggi 2 minute noodles, an instant noodles product.
With the launch of Maggi noodles. Its created an entirely new food category instant
noodles in Indian packaged food market. Because of its first mover advantage, its
successfully managed to retain its leadership in the instant noodles category even until the early
2000s.
Nestle offered a variety of culinary products such as instant noodles, soups, sauces and
ketchups, cooking aids etc.

MAGGI INDIA
Nestle India limited is the market in Indian noodles market with its Maggi brand of
noodles which was pioneer brand launched in 1983 in the packaged food market of Indian. It
took the challenges and established Maggi in Indian market considered to be conservative and
typical about food consumption.

PROBLEM STATEMENT
The vision of MAGGI is more relevant than ever before as Maggi has become a
synonymous with taste and quality. They strive to build on the ambition of Julis Maggi of
making delicious, quality and balanced food accessible to all, as homes across world use Maggi
to cook up delicious meals day after day.
In India, Maggi instant noodles were very popular; Nestle had a 90% share in India. In
June 2015, it was reported in India that tests had found high amounts of lead and MSG in Maggi
noodles, and FSSAI(Food safety and standards authority of India) ordered country-wide
withdraw and recall for all 9 variants of Maggi Instant Noodles and Oats Masala Noodles.
With the Maggi ban hitting sales of company's other products as well.
Bringing the instant Maggi noodles brand back to the market will be our top priority and
back to Indian shelves.
The company has also identified other categories and looking at opportunities of
introducing new products to overcome the challenge.
Maggi recalled stock worth nearly Rs.320 crore from the shelves and paid 20 crores t a
cement factory to burn the product. In addition, corporate affairs ministry imposed an Rs 640
crore fine on Nestle India for the presence of MSG (mono sodiumgultamate) and lead beyond
permissible limit.

RESEARCH DESIGN
Research type: Descriptive.
Source of data: secondary data, survey through questionnaires.
The research will be carried out in the form of survey. This will include primary research and
secondary research as stated below. The survey research method will be descriptive research
design. Each respondent will be interview through questionnaire. The sample will be selected by
simple random sampling method. The survey will address the following information area.
Sample size: 200
Sample area: Dharwad.
Sample frame : Households.
Sample size calculation: At 5% los
= 195.92200
For the convenience of conducting the survey we are going with sample size of 100
Where,
n - Sample size
Z =1.96 from statistics table
P Probability of decrease in sales from an article of TOI
d 5% LOS

Information area:
The objective spelt out can be elaborated into specific information areas to be studied.

How the customers are being influenced by the comeback strategy of Maggi?

How do people see Maggi after the problem that it encountered?

How do people associate themselves with Maggi?

OBJECTIVES

To see whether the people are aware about the problem associated with Maggi.

To understand the influence of Maggi as a brand on consumer mindset.

To understand the people perception about the product before and after the problem.

To see whether the age and consumer pattern are dependent on each other

APPROACH
The approach is the way used to address the problem and objectives are designed to address that
particular problem, the problem associated with Maggi is that the presence of the chemicals that
is lead and mono sodiumgultamate.
To address the objectives we have conducted survey through questionnaire and the survey has
been conducted in the locality of Dharwad which includes the age ranging from 12 years to 45
years.

Descriptive Research
Research objective calls for more detailed data on a specific topic; youll be conducting
quantitative descriptive research. The goal of this form of market research is to measure specific
topics of interest, usually in a quantitative way. Descriptive research depends on the survey
method, on the sample size that we undertake in our studies. Surveys are the most common
research instrument for descriptive research. As we are studying the consumer behavior of Dairy
milk Chocolate we have chosen the descriptive type of research for our convenient study.

Survey method

Survey method is suitable to collect primary data about the Maggi.

Easier to find the target population.
We collect information from consumers
Survey method useful to find out the awareness of the consumers towards the product.

Data collection:
Primary Data collection:
Under the primary method we shall take up the survey method, where in we
will select a sample population according to which we will further proceed with the
questionnaire method. In the project as we are using the descriptive method, we will have to rely
on the questionnaires that will be filled by the consumers of Maggi. And also on the observations
will the primary source derived.

Secondary data collection:

For the secondary data we will have to depend upon the sources like newspapers, journals,
research studies and other sources will be used.
Sampling method used is non probalistic sampling for convince, and also the Maggi everyone is
aware of and also consumes (i.e maximum number of people). Hence this method of sampling is
used.
Sampling frame we are using in our research is the households and paying guests nearby
Gandhinagar, kalyanagar and Srinagar these areas are selected because of the availability of the
consumers of our target population on which the survey has been conducted as the selected age
group is between11-45.
Sample size - 100

HYPOTHESIS TESTING

1. To check whether people are aware about the problem

associated with Maggi
Ho : Not more than 30% of people are aware about the problem associated with Maggi
(<30%)

Ha : More than 30% of people are aware about the problem associated with Maggi
(30%)
N = 100
Level of significance = 5%
Here we apply z-test to check the hypothesis because sample size is greater than 30 and
to carry out this test we would be in need of mean and standard deviation. Which are
calculated below
Mean = (x)/N = 100/4 = 25
Standard deviation = 18.092
Z = (mean population mean) / (standard deviation/n)
= (25 -30) / (18.092/100)
Z calculated = -2.763

Normal curve:

As we can see the limits are -1.645 and the calculated value is beyond the
limits. Hence we reject the Ho and accept Ha, that is more than 30% of people are aware about
the problem associated Maggi.
This is because Maggi was like daily routine for all of us and it was part of our diet. And as it
was ban for a couple of months everyone was curious to know the reason why it was banned and
hence the results which can be depicted here is that more than 30% of people are aware about the
problems that are associated with Maggi

2. To check if means of sample are equal before and after the ban
(Concerned to health).
Ho : Means are equal (before = after)
Ha : Means are not equal (before after)
In this hypothesis we are about to test whether the ban on Maggi has affected the
consumers perception on Maggi towards health.
We have taken sample of two, first sample is of health concern before the ban issue and
later one is the sample of customers response taken after the ban issue.
Health before ban

Response
SA

Before ban
scale
value
f
5
3

fx
15

27

108

52

156

DA

10

20

SDA

100

307

Total

SA- strongly agree, A- agree, N neutral, DA disagree, SDA Strongly disagree

Healthy

Unhealthy
Total

After ban
scale
value
f
7
16
6
9
5
18
4
16
3
11
2
10
1
20
100

fx
112
54
90
64
33
20
20
393

Here we are going to carry out t-test to test the hypothesis whether the ban on Maggi has
affected people perception regarding health concern.

Paired Samples Statistics

Mean
Pair 1 After
Before

Std.
Deviation

Std. Error
Mean

70.6000

30.91602

13.82606

61.4000

66.78173

29.86570

Paired Samples Statistics

Mean
Pair 1 After
Before

Std.
Deviation

Std. Error
Mean

70.6000

30.91602

13.82606

61.4000

66.78173

29.86570

Paired Samples Test

Paired Differences

Mean
Pair 1 after
Before

9.20000

Std.
Deviation
68.59082

95% Confidence Interval

of the Difference
Std. Error
Mean
Lower
Upper
30.67475

-75.96675

94.36675

T
.300

Sig. (2tailed)

df
4

This t-test has been carried out in the SPSS software and from which we can
depict that Ho has been accepted because the significance is greater than 0.05. The
significance value for two tail test is 0.779 through we can say means are equal.
There is no evidence that people perception has changed towards Maggi (regarding
health) has changed significantly.

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.779

3. To see if age group and perception of people towards Maggi

(being healthy) are associated with each other
Ho : There is association between age group and perception (age = perception)
Ha : There is no association between age group and perception (age perception)

To test this particular hypothesis we are going to carry out ANOVA test to
check the association between the age group and the perception towards Maggi
(being healthy).
The age group ranges from 12 45 and the perception pattern is measured on the
7 scale with healthy being given value of 1 and unhealthy being value given 7.
Here the results of ANOVA carried out in SPSS statistics.

Descriptive
Age
95% Confidence Interval
for Mean
N

Mean

Std.
Deviation Std. Error

Lower
Bound

Minimu Maximu
Upper Bound
m
m

1.00

16

2.3125

.79320

.19830

1.8898

2.7352

1.00

4.00

2.00

2.7778

.97183

.32394

2.0308

3.5248

1.00

4.00

3.00

18

2.6667

.90749

.21390

2.2154

3.1179

1.00

4.00

4.00

16

2.6875

1.13835

.28459

2.0809

3.2941

1.00

4.00

5.00

11

3.7273

.64667

.19498

3.2928

4.1617

2.00

4.00

6.00

10

1.8000

1.22927

.38873

.9206

2.6794

1.00

4.00

7.00

20

2.1500

1.30888

.29267

1.5374

2.7626

1.00

4.00

Total

100

2.5500

1.13150

.11315

2.3255

2.7745

1.00

4.00

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ANOVA
Age
Sum of
Squares
Between Groups

df

Mean Square

25.988

4.331

Within Groups

100.762

93

1.083

Total

126.750

99

F
3.998

Sig.
.001

As the significance is .001 that is less than .05 we reject Ho, which makes
us to accept Ha , hence we can say that there is no association between age and the
perception towards Maggi.
No matter what the age is the Maggi is considered to be health friendly and is
edible by all the age group. Even though the Maggi was banned for a couple of
months it is able to keep the trust in heart of Indian people as hygienic food for
their family.

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4.

To check whether the age and consumption pattern are

dependent on each other.

Ho : The age group and consumption pattern are independent (age = consumption pattern)
Ha : The age group and consumption pattern are dependent (age consumption pattern)

We have done chi- square test to check the above hypothesis, to check the
dependence of age group and the consumption pattern. This hypothesis is carried out
because the consumption pattern is mainly dependent on the age group, as age is driving
force for the people to change the preference and tastes.
Chi- square test is carried out in SPSS statistics and the results are depicted as follows.

Chi-Square Tests
Value

Asymp. Sig.
(2-sided)

df

8.000a

.238

Likelihood Ratio

8.318

.216

Linear-by-Linear
Association

1.667

.197

N of Valid Cases

Pearson Chi-Square

We reject Ho as the significance is greater than 0.05 and we conclude that

consumption pattern is dependent on the age.
This is because the consumption pattern is dependent on the age but it a factor
that is dependent on the mindset as well and will of the people. As far as the
Maggi is concerned all age people consume Maggi and we can see in our data
collected more people in the age group of 20-30 consume more of Maggi as it is
an easy food to cook and also quick supper, as it can be prepared in 2 minutes.

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DATA INTEPRETATION
Noodles are a staple food in many cultures made from unleavened dough which is
stretched, extruded or rolled flat and cut into one of variety of shapes. A single noodle can be
made, eaten, or extracted from a serving of noodles, but it is far more common to serve and eat
many at once, and thus more common to see plural form of the word.
Among the various brand of noodles used in our survey the following results are obtained

BRAND

Maggi

yippee

Patanjali

Top
Ramens

NO's

66

20

10

As we all know that Maggi is the well-known brand for the noodles and the same has
been reflected in the survey conducted. Which can be seen in the following tables as well.

70
60
50
40
30

66

20
10

20

10

0
Maggi

yippee

Patanjali

4
Top Ramens

Availability is becoming an increasing important issue for consumers seeking out

convenient grocery solutions, and institute of grocery distribution (IGD) claims store loyalty is
fading as the customer propensity for promiscuity grows

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It seems shoppers are increasingly relying on factors that make shopping easier and quicker, and
improving availability is one strategy for delivering against this expectation.
Hence making the product available at all the sources of shopping has become a matter of prime
importance.

Availability
Big bazzar or
More
16%
Shop near to
house
42%
Kirana shop
35%

Wholeslae shop
7%

Here, we can see that Maggi is available not in the malls like big bazzar and more but also
available at the shop nearby house, there is no availability problem associated with the Maggi.
And as maggi is food that can be prepared within no time and hence people wish to buy it as well
within no time even when they are at their home. Even though the percentage at wholesale shop
is less but the wholesale shops acts as a distributor to the retailers near our house and at kirana
shops.

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Features
Product features are the characteristics of the product that describe its appearance, components
and capabilities. A product feature is a slice of business functionality that has corresponding
benefit or set of benefits for that products end users.
To offer maximum value, product features must be prioritized effectively. Features should be
added based on quantifiable ways that they will add value for the products end users. Product
features should also be prioritized based on how well they achieve business objectives.
For the survey we have chosen few of the features of the Maggi that are ranked from 1 to 5 based
upon the priority of the consumers.

Taste

Hygiene

Variety

Availability

Packing

Here we see that taste tower is on the shorter side, which depicts that the least rank which means
the highest preference is being given to the taste, and the second rank is being assigned to the
availability which can be related to the findings of the previous section.

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Advertisement
Advertising is how a company encourages people to buy their products, services or ideas.an
advertisement is anything that draws good attention towards these things. It is usually designed
by an advertising agencies for an identified sponsor, and performed through a variety of media,
newspaper, magazines, and as bill boards in streets and cities. They try to get people to buy their
products, by showing them the good rather than bad of their products.

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38

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So most of the people are satisfies with the appeal that Maggi is trying to do and that is depicted
in the above table which gives the result of smiling face which is given highest value.

Advertisement
Brother & sister

Mother & daughter

22%

2 Min maggi

Hostel

10%
25%

43%

The advertisement of the Maggi that were considered to conduct the survey were

Brother and sister advertisement

Mother and daughter advertisement

2 minute Maggi advertisement

Hostel advertisement

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Out of which the advertisement of consolidated advertisements of all Maggi add which is
termed as the 2 min Maggi advertisement is liked most, the few reasons quoted for the
likelihood of the this advertisement was the song and the jolly nature of the
advertisement.

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FINDINGS
As per our research conducted by us on the Nestle Maggi we have ended with
some findings, which are stated below.

Most of people in the locality of the Dharwad are aware about the
problems associated with Maggi (that it was banned because of excess of
lead and MSG).

Even though consumers of Maggi are aware about problem and are health
concern they still believe in the good will of company and the perception
of people towards Maggi has not been changed significantly.

When it comes to age, all age people consume Maggi. Teenagers like it
because of taste, youngsters like it because it is easy to cook (gets ready in
two minutes), whereas elderly people are little bit a step behind in
consumption Maggi it might be because of problem, but however it was
found that age and the perception towards Maggi being healthy has not
changed significantly.
Hence it was seen that age and the consumption pattern are inter-related to
an extent and it may be because of various factors like taste, ease to
prepare, healthy, enough to kill the hunger or it might also be the
availability.

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SUGGESTIONS

Yes! When it comes to the market share holder of the noodles it is no

doubt that nestle Maggi is the leader but the leader always has a
competitors to pull it back so does the Maggi and those are yippe noodles
and patanjali, hence Maggi to retain its position in the market shall never
take the competitors easy.

Now a days shopping has been quicker and easier thats why Maggi has to
be available in every nook and corner shop and according to research
conducted it was almost successful, some efforts on distribution and
Maggi is available to everyone.

The most preferred advertisement is the 2 minute maggi advertisement,

and showing this advertisement again and again on the television would
add up the customers and also retain the available customers because it is
the advertisement which depicts the most important feature of Maggi (gets
ready in two minutes) and also the song that has been played in
background invites people to see it and remember the product.

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CONCULSION
Maggi a well-known brand for its noodles and various other edible items has been
under the media and people observation since couple of months, but now it has
been working hard to recover the goodwill and image in the market, thats why
we can see the advertisement of Maggi targeting the emotions of the people and
the attachment they had earlier with product.
Hence we can conclude that Maggi has significantly gained the market back and
is able to overcome the problem successfully.
Maggi is back on the Indian shelves.

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REFERENCES

MARKETING RESEARCH by Naresh malohtra. Edition

Article from TOI dated july 2015.

www.ncbi.nlm.nih.gov

www.Scribd.com

www.Nestleindia.com

www.nestle.in

www.study.com

Statistics vol2 for second pu, Raj mohan.BENAKA BOOKS

STATISTICS FOR MANAGEMENT by Richard Levin, David Rubin, Sanjay Rastogi,

Masood Husain Siddiqui. Seventh edition 2015.

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