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BANGALORE UNIVERSITY
BY
Thirumal.b
(REG.NO: 14DKCMD081)
Prof.RUMIYA.AGASHE
Faculty, SIMS
2015 – 2016
DECLARATION
ON OTHER READY TO EAT FOODS” is the result of the project work carried out by me
under the guidance of Prof. RUMIYA.AGASHE in partial fulfillment for the award of
Master’s Degree in Business Administration by Bangalore University.
I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other University or Institute for the award of any other Degree or Diploma
or Certificate.
Signature
CERTIFICATE OF ORIGINALITY
This is to certify that the project report title “A STUDY ON BANNING OF MAGGI
ON OTHER READY TO EAT FOODS” submitted by SANEESH.T.A (14DKCMD081)
to Bangalore University, Bangalore for the award of degree of MASTER OF BUSINESS
ADMINISTRATION is a record of work carried out by he under my guidance.
Date : 27-08-2015
ACKNOWLEDGEMENT
The satisfaction and the happiness that accompanies the successful completion of only
task would be incomplete without expression and gratitude to the people who made it
possible.
I thank the almighty for having blessed me with the ability to complete my project
properly and also for guiding me in all walks of my life.
Finally I once again thank each and everybody who has helped me to complete this study.
Signature
LIST OF TABLES AND FIGURES
INTRODUCTION
2 REVIEW OF LITERATURE
4 4.2 CONCLUSION
APPENDICES
BIBLIOGRAPHY
TABLE OF CONTENTS
CHAPTER 1
INTRODUCTION
1.1 BRIEF INTRODUCTION
The fast food industry in India has evolved with the changing lifestyles of the young Indian
population. The sheer variety of gastronomic preferences across the regions, hereditary or
acquired, has brought about different modules across the country. It may take some time for
the local enterprise to mature to the level of international players in the field.
Many of the traditional dishes have been adapted to suit the emerging fast food outlets.
The basic adaptation is to decrease the processing and serving time. For example, the typical
meal which called for being served by an ever alert attendant is now offered as a Mini-Meal
across the counter. In its traditional version, a plate or a banana leaf was first laid down on the
floor or table. Several helpers then waited on the diner, doling out different dishes and
refilling as they got over in the plate.
In the fast food version, a plate already arranged with a variety of cooked vegetables and
curries along with a fixed quantity of rice and Indian flatbreads is handed out across the
counter against a prepaid coupon. The curries and breads vary depending on the region and
local preferences. The higher priced ones may add a sweet to the combination. Refills are
generally not offered.
The diversity of Indian cuisine poses logistical problems when it comes to handling.
Hence it is common to serve different cuisines at different counters within the same premises.
Presence of a large vegetarian population, who eschew non-vegetarian food, has given rise to
outlets which exclusively serve vegetarian fast food. Also, different variety of food may be
served depending on the times of the day. Beverages such coffee, tea, soft drinks and fruit
juices may also be served in such outlets. Some outlets may additionally have specially
designed counters for ice-cream, chats etc.
Popular formats of fast food business in India have the following features in common:
Tall tables, usually of stainless steel, where one can eat while standing
Most of the fast food outlets in India are stand alone establishment, few of them having more
than one branch
Instant noodles have become one of the world's most popular food items owing to their
versatility and convenience. This product is one of the first ready-to-eat foods launched
widely in the global food industry and now it has successfully become an important part of
modern food consumption. The major trends observed in the global instant noodles market
are product innovation; focus on nutritional value of product and instant marketing of instant
noodles. Disposable income and purchasing power parity of consumers in various regions
across the globe represent major economic factors that influence the demand, and
consumption for instant noodles. Typically, consumers with higher disposable income
consume higher amounts of instant noodles. Indonesians spend more than 70 percent of their
disposable income on instant noodle products, trailed by Chinese consumers, who spend
about 56 percent of their income. South Korean consumers spend 33.2 percent, closely
followed by Thai consumers with 30 percent. Mexicans and Indians, on the other hand, spend
a very small percentage of their incomes on instant noodles partially due to the purchasing
power parity and partially due to a vast difference in culinary cultures.
Unlike in other parts of the world, an instant noodle is a mainstream food category in Asia-
Pacific. The region, led by relentless demand from the Chinese and Hong Kong markets, is
portended to continue its dominance over the coming years. Emerging over the Asian horizon
is China that is recording massive production and consumption figures. With relatively low
annual per capita consumption levels compared to other Asian counterparts, China represents
a potential market for instant noodles. Instant noodles in Middle East/Africa are experiencing
a growth in the demand, with the introduction of newer products into the market and are
poised to grow at a strong compounded annual growth rate over the long-term.
Major players profiled in the world market include Acecook Vietnam Co., Ltd., Ajinomoto
Company Inc., Blue Dragon, CJ Corporation, HJ Heinz Co., Ltd., Kohlico, MAMEE-Double
Decker (M) Berhad, Nestlé India Ltd., New Dragon Asia Corp., Nissin Food Products Co.,
Ltd., Nong Shim Co., Ltd., Pt. Indofood Sukses Makmur TBK, Samyang Foods Co., Ltd.,
Sco-Fro Foods Ltd., Tat Hui Foods Pte Ltd., Thai President Foods Public Company Limited,
Tingyi (Cayman Islands) Holding Corp., Toyo Suisan Kaisha, Ltd., and Uni-President
Enterprises Corp.
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.
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 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
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)
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.
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.
The following table shows India’s noodle consumption in the last 5 years.
YEAR 2010 2011 2012 2013 2014
CONSUMPTION (TONNES) 2940 3530 4360 4980 5340
MAGGI BRAND IN INDIA
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.
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.
others 20 20.00%
others; 55; 55.00% Maggi Maggi
Maggi; 45; 45.00% others Maggi 80 80.00% others
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 atta noodles are introduced mainly for vegetarians. It was filled with real vegetables
and offering with masala flavor.
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
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
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.
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
Regular
Ala Masala
Curry in Hurry
Slice of Spice
Multi Grain
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 5th 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.
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. 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.
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, addictives and other attributes of what they buy and
eat., even though they decide the future of each product. So I took 150 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. 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.
Through adequate care has been taken while doing the project. This project still suffers
from certain limitations. They are;
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.
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.
CHAPTER 2
REVIEW OF LITERATURE
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.
“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
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).
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…
“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”
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.
“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”.
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.
“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”
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.
“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.
CHAPTER 3
1 USERS 102 68
2 NON- USERS 48 32
TABLE 3.1
USERS; 68
PERCENTAGE
NON- USERS; 32
FIGURE 3.1
Above table and graph shows that out of 150 respondents, only 102 are using any kind of
noodles or ready to cook products, that is 68%.Remaining 32% respondents not used any
kind of ready to cook products. So these 102 respondents are the base for further analysis.
AGE OF RESPONDENTS
2 15 – 30 48 47.1
3 30 above 18 17.6
TABLE: 3.2
Less than 14
15 – 30
30 above
15 – 30; 47.1; 47.10%
FIGURE 3.2
2 Students 35 34.3
3 Agriculturists 10 9.8
4 Others 12 11.8
TABLE 3.3
Students; 34.3
PERCENTAGE
others; 11.8
Agriculturists; 9.8
FIGURE 3.3
TABLE 3.4
Tasty/Fun eating food; 9.8; 9.80%
Junk food; 6.9; 6.90%
Good for health; 34.3; 34.30%
FIGURE 3.4
From the table it is clear that 49% of the users cosuming these products because it is ready to
eat.34.3% beleves that it is a nutritious food so it is good for health.9.8% using it because of
its taste and for fun. 6.9% of respondents using it as a junk food.
1 CHILDREN 68 66.7
2 SPOUSE 15 14.7
3 PARENTS 5 4.9
4 OTHERS 14 13.7
TABLE 3.5
CHILDREN; 66.7
PERCENTAGE
SPOUSE; 14.7 OTHERS; 13.7
PARENTS; 4.9
FIGURE 3.5
Above table shows that childrens are prefering (66.7%) ready to eat products mostly in
homes.The husband or wife prefering ready to eat products secondly(14.7%) because the
working women number is increasing in india.and the other category holds third position in
homes( 13.7%).
1 YES 37 36.3
2 NO 65 63.7
TABLE.3.6
PERCENTAGE
NO; 63.7
YES; 36.3
FIGURE 3.6
The table shows that 63.7% of respondents are unaware about the quality of these ready to
cook products.They are using it is because these foods are convenient.Only 36.3% of
respondents are considering the quality while buying these products.
1 YES 60 58.8
2 NO 35 34.3
3 LITTLE 7 6.9
TABLE 3.7
YES; 58.8
NO; 34.3
PERCENTAGE
LITTLE; 6.9
YES NO LITTLE
FIGURE 3.7
The above table shows that 58.8% respondents know these foods make health hazards even
though they are using the same products.34.4 %respondents are not awre about the prolems
of this instant foods.6.9% respondents know littile about the health hazards but they don’t
take it as serious.
1 YES 38 37.3
2 NO 64 62.7
TABLE 3.8
YES; 37.3; 37.30%
YES
NO; 62.7; 62.70%
NO
FIGURE 3.8
Above table shows that 62.7% customers don’t have any knowledge about the
MSG.LEAD.and other ingredients in these instant foods.37.3% are aware about this
ingredients but they are knowingly buying these products.
By checking product
3 37 36.3
quality
Total
102 100
TABLE 3.9
By checking product quality; 36.3; 36.30%
By watching advertisements; 45; 45.00% By watching advertisements
Recommendations from friends
and relatives
By checking product quality
FIGURE 3.9
Above table reveals that 45% of respondents buying these instant cook products by watching
advertisement while 36% buying it by checking the product quality.The rest 19% buying it as
per the recommendations of their friends and relatives.
1 YES 25 24.5
2 NO 77 75.5
TABLE 3.10
YES; 24.5; 24.50%
YES
NO
FIGURE 3.10
Above table shows that after maggi’s ban majority (75.5%) not used any kind of these food
products.I think it is because of fear.24.5% continued their usage of noodles on similar
brands,after Maggi’s ban.
1 SUNFEAST YIPPEE 15 60
2 HORLICKS FOODLES 5 20
3 CHING’S NOODLES 5 20
4 OTHERS 0 0
Total 25 100
TABLE 3.11
SUNFEAST YEPPIE; 60
PERCENTAGE
HORLICKS FOODLES; 20
CHING’S NOODLES; 20
OTHERS; 0
SUNFEAST YEPPIE HORLICKS FOODLES CHING’S NOODLES OTHERS
FIGURE 3.11
After maggi’s ban only 24.5% users substituted the company.out of that people majority
choosed sunfeast yeppie noodles.Balance customers choosed both horlicks foodles and
ching’s noodles equally.
1 SUNFEAST YIPPEE 13 52
2 HORLICKS 12 48
FOODLES
3 CHING’S NOODLES 0 0
4 OTHERS 0 0
Total 25 100
TABLE 3.12
SUNFEAST YEPPIE; 52
HORLICKS FOODLES; 48
PERCENTAGE
CHING’S NOODLES; 0 OTHERS; 0
SUNFEAST YEPPIE HORLICKS FOODLES CHING’S NOODLES OTHERS
FIGURE 3.12
Above table shows that 52% of respondents are satisfied on Sunfeast Yeppie noodles and
48% of customers are satisfied on Horlicks foodles.Yeppie and foodles got benefit from the
ban of Maggi.Other brands didn’t make any influence on customers.
1 YES 77 75.4
2 NO 25 24.5
TABLE 3.13
NO; 24.5; 24.52%
YES
NO
FIGURE 3.13
From the above table 75.4% believes that brand ambassodors will influence the buying
decision of consumers,they are considering these products because of the stars appearing in
the advertisement of these products,but 24.5% of respondents argues that brand ambasodors
don’t have any influence on their buying decision,they are considering the quality rather than
promotional techniques.
1 YES 76 74
2 NO 26 26
TABLE 3.14
YES; 74
PERCENTAGE
NO; 26
YES NO
FIGURE 3.14
From the given table and graph 74% of respondents believes that maggi issue has an impact
on the ready to eat products industry because now they are checking the ingredients before
buying a product and 26% arguing that it has no impact on the market.These 26% are not
aware about the present market scenario.
1 YES 29 28.5
2 NO 73 71.5
TABLE 3.15
NO; 71.5
PERCENTAGE
YES; 28.5
YES NO
FIGURE 3.15
From the above table we can undestand that 71.5% of respodents now will not recommend
noodles for their friends and relatives after Maggi’s issue and 28.5% will recommend for
their friends and relatives now.
1 YES 58 56.8
2 NO 44 43.2
TABLE.3.16
YES; 56.8
NO; 43.2
PERCENTAGE
YES NO
FIGURE 3.16
Above table shows that 56.8% respondents believes that the maggi issue has affected the
Nestle’s products,they are now watching other products of Nestle doubtfully.43.2%
respondents saying that no affect on Nestle’s products.
1 YES 82 80.4
2 NO 20 19.6
TABLE 3.17
NO; 19.6; 19.60%
YES
NO
YES; 80.4; 80.40%
FIGURE 3.17
Above table shows that 80.4% believes that Maggi’s ban is the protection of consumer
rights.They think that through the intervention of FSSAI in ready to eat food market will help
to maintain quality measures and other regulatoryactivities,19.6% believes that it is not
protection of consumer rights but it is interference to the business rights.
REACCEPTANCE OF MAGGI
1 YES 43 42.2
2 NO 59 57.8
TABLE 3.18
NO; 57.8
YES; 42.2
PERCENTAGE
YES NO
FIGURE 3.18
The given table and graph shows that 57.8% respondents Won’t accept maggi again,because
they are scared about the quality of this products.But 42.2% are ready to reaccept maggi if
they comeback after solving problems.
CHAPTER 4
SUMMARY OF FINDINGS,
CONCLUSION & SUGGESTIONS
4.1 FINDINGS
It has been found that majority of the respondents are users of any kind of ready to
cook food products. Out of 150 samples 102 respondents are users.
It has been found that majority of the users comes between 15- 30 age limits.
It has been observed that majority of the respondents using it because of its easy in
preparation.
Children in the family mostly preferring noodles and other ready to eat food products.
Majority of the respondents are not aware about the quality of these products.
It has been noticed that majority of the respondents are not aware about the health
hazards of these products and even they don’t know what is MSG LEAD and other
ingredients of the products.
It has been found that only minority respondents substituted the products after
Maggi’s issue, out of those minority respondents around 60% choosed SUNFEAST
YIPEE.
It has been noticed that majority have the opinion that advertisement and brand
ambassadors have an influence on their buying decision.
It has been found that majority of the respondents are now in fear to recommend
noodles for their friend and relatives.
Majority of the respondents have the opinion that the Maggi issue has an impact on
Nestle’s products and in the whole ready to cook food products.
It has been found that majority of the respondents denying the reacceptance of Maggi.
4.3 CONCLUSION
Traditionally Indians believe in consuming fresh stuff rather than packaged or frozen, but the
trend has changed India became a top market for fast food companies. There are various
companies like Nestle, Sunfeast, Horlicks, Ching’s, Maruchan Ramen competing each other
in Indian market.
Maggi is a product that belongs to Nestle India, which is one of the leading fast food
companies in the country. But few months back government of India banned Maggi Noodles
because they are using monosodium glutamate (MSG) and lead beyond the permissible limit
in their product. This Maggi issue has made a negative impact on whole Indian ready to cook
products market. The sale of the total industry declined by 60% to 70%.The total industry
now under a radar view because the customers and other authorities doubtfully watching
these products. In order to overcome these problems the study insisted that the companies
should come out with new advertisement techniques, promotional campaigns and especially
customer awareness programmes.
4.3 SUGGESTIONS AND RECOMMENDATION
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
Maggi should introduce an alternative snack in the ready to cook market which will
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
The customers should check the ingredients and other relevant information before
purchasing a product.
CHAPTER 5
I got an opportunity to go through the details of various ready to eat food during the last one
month as a part of MBA 3rd semester project. Meeting with different consumer was different
experiences. I met 150 people with 150 attitudes. Some respondents were worried about the
present conditions of the instant food market. Another group of people were supporting the
ban of Maggi noodles from the market. Out of 150 respondents some of them positively
responded to my questions where a few group didn’t take it seriously. I wondered about the
people’s positive attitude toward this survey. The peoples had a lot of doubts about the
Maggi’s banning. So I tried to clarify those doubts as possible.
I understood a lot of things about the instant food industry which was before unaware for me.
Learned about the ingredients of noodles, specifications, etc...I got idea about the major
players of ready to cook food industry in India and the market share of each company. Maggi
was a group of products from Nestle Company, so learned the history and different types of
products of the Nestle Company. I studied the different types of crisis management
techniques used by the Maggi. The Nestle Company recalled 27000 tons of Maggi noodles
from outlets and they send samples for their own testing and external lab testing. The
company authorities met the media and gave clarifications. I understood that what a
management should do on a crisis time.
If any problem happens to any product of a company the effect is not only to that product or
other products of the same company but also to the whole industry. Why I am saying it
because of the Maggi’s ban the total sale of Nestle as well as the whole industry declined
industry declined. I understood the importance of quality management in each product. The
company should be more ethical to the society. Business should give priority to consumers. In
the case of Maggi they were not gave much importance to Indian consumers. In the case of a
multinational company the company affairs must be under the law of each country.
5.2 WORK DONE DIARY
PERSONAL DETAILS
Name :
Occupation :
Age :
Education Qualification :
GENERAL DETAILS
1. Were you a consumer of Maggi or any other ready to cook food products?
B. READY TO EAT
C. JUNK FOOD
3 Who among your family members mostly prefer Maggi or other noodles?
A. CHILDREN
B.SPOUSE
C.PARENTS
D.OTHER
3 Are you aware about the quality of these products?
(A)YES (B) NO
5 Do you know what is MSG, lead and other ingredients in these food products?
(A)YES (B) NO
(A)YES (B) NO
B. HORLICKS FOODLES
D. OTHER
10 Do you think that brand ambassadors have influence on customers buying decision?
11 Do you think that ban of Maggi has an impact on Indian ready to eat product
industry?
15 Do you think that the Maggi issue has affected other products of Nestle Company?
17 Will you accept Maggi if they come back after solving problems?
BIBLIOGRAPHY
BOOKS REFFERED
JOURNAL
THE WALLSTREET JOURNAL.
WEBSITES
WWW.INSTANTNOODLES.ORG
WWW.WIKIPEDIA.COM
WWW.NESLTE.IN