A Study On Customer Satisfaction Toward Maggi Noodles
A Study On Customer Satisfaction Toward Maggi Noodles
A Study On Customer Satisfaction Toward Maggi Noodles
On
School of Management
Lucknow
DECLARATION
I hereby declare that the field work entitled of “A Study on Customer Satisfaction
Afeefa Fatima (Faculty Guide) (SOM BBDU, Lucknow) and this field study report
Janhvi Rai
Before I get into the thick of the things I would like to add a few heartfelt words for
the people who were part of this Field Study Report in numerous ways and people
who gave unending support right from the stage the project was started, appreciated
I would like to express my deep sense of gratitude to the respectable Prof. (Dr.)
Sushil Pande Sir, I\C, SOM, BBDU personalities for their precious suggestions and
In this context I would like to express my gratitude towards my parents and family
members who have constantly supported and played a pivotal role in shaping my
career.
I owe my sincere gratitude towards faculty guide Dr. Afeefa Fatima of BBDU,
Lucknow for extending the support towards the completion of the Field Study
Report.
And finally I would like to thank my friends for their unending support
Janhvi Rai
Field Study Report is an important part of the Management studies. It bears immense
important in the field of Business Management. It offers the student to explore the
valuable treasure of experience and an exposure to real work culture followed by the
industries and thereby helping the students to bridge gap between the theories
understand the real world in which he has to work in future. The theories greatly
enhance our knowledge and provide opportunities to blend theoretical with the
practical knowledge where researcher gets familiar with certain aspect of research. I
1 Introduction 1
2 Company profile 8
4 Research Methodology 21
6 Findings 34
7 Suggestions/Recommendations 35
8 Limitations 36
9 Conclusion 37
10 Bibliography 38
11 Appendix 39
INTRODUCTION
Maggi
Type Food
Founded 1884
Parent Nestlé
Website www.nestle.com/brands/allbrands/maggi_culinary
soups, and noodles that originated in Switzerland in the late 19th century. The Maggi
History
The company originated in Switzerland in 1884, when Julius Maggi took over his
improve the nutritional intake of worker families. 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.
1
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.,
Products
Cube
The bouillon cube or Maggi cube is a meat substitute product that was introduced in
1908.
Ghana, Burkina Faso, Togo, Sierra Leone, Liberia, Mali, Niger, and Mauritania and
parts of the Middle East, Maggi cubes are an integral part of the local cuisine. In Haiti
and throughout Latin America, Maggi products, especially bouillon cubes, are widely
sold with some repackaging to reflect local terminology. In the German, Dutch, and
Danish languages, lovage has come to be known as Maggi herb (Ger. Maggikraut,
Seasoning sauce
Republic, Slovenia, Poland and France, "Maggi" is still synonymous with Maggi-
Würze (Maggi seasoning sauce), a dark, soy sauce-type hydrolysed vegetable protein-
based condiment sauce. In Spain and Mexico, it is sold under the name Jugo Maggi.
2
There are a total of nine different formulations, which differ between nations and/or
regions.
Noodles
Maggi instant noodles are popular in Bangladesh, South Africa, Pakistan, Nepal,
Singapore, Malaysia, Australia, New Zealand, and India and are synonymous with
instant noodles in most of these countries. Nestle has 39% market share in Malaysia,
and had 90% market share in India prior to a nationwide ban by the Food Safety and
Standards Authority of India. The ban was later lifted, but market share diminished to
53%. In Malaysia and Singapore, fried noodles made from Maggi noodles are called
Maggi goreng. Maggi Instant noodles are branded as "Maggi 2 Minute Noodles" in
In India, Maggi Masala noodles carry a green dot, meaning they are specifically
formulated to serve vegetarians. However, Maggi chicken noodles carry a red dot,
indicating that they are not vegetarian. This special formulation is not available in
In Philippines, localized versions of Maggi instant noodles were sold until 2011 when
the product group was recalled for suspected Salmonella contamination. It did not
return to market, while Nestle continues to sell seasoning products including the
3
Recipe mixes
Recipe mixes or so-called Fixes were introduced in Germany in 1974. The product
offers to the consumers an idea and a recipe to cook with two or three fresh
ingredients and a Maggi mix. A complete step-by-step recipe is given on the back of
the package. These products were originally launched in Germany, where they
became very popular, and some Western European countries. In the 1990s, recipe
mixes were introduced in Eastern Europe, particularly in Russia and Poland (under
the Winiary brand), where they became a big success. Nowadays, the portfolio of
recipe mixes offer consumers more than 100 recipe ideas across different European
countries.
4
Consumer satisfaction is a term frequently used in marketing. It is a measure of how
percentage of total customers, who‘s reported experience with a firm its products, or
Standards Board (MASB) endorses the definitions, purposes, and constructs of classes
of measures that appear in marketing metrics as part of its ongoing common language
responded that they found a customer satisfaction metric very useful in managing and
shrink, companies are scrambling to boost customer satisfaction and keep their current
customers rather than devoting additional resources to chase potential new customers.
The claim that it costs five to eight times as much to get new customers than to hold
on to old ones is key to understanding the drive toward benchmarking and tracking
customer satisfaction.
may be a new concept to companies that have been focused almost exclusively on
income statements and balance sheets. Companies now recognize that the new global
economy has changed things forever. Increased competition, crowded markets with
little product differentiation, and years of sales growth followed by two decades of
5
flattened sales curves indicate to today‘s sharp competitors that their focus must
change. Competitors that are prospering in the new global economy recognize that
measuring customer satisfaction is key. Only by doing so can they hold on to the
customers they have and understand how to better attract new customers. Successful
competitors recognize that customer satisfaction is a critical strategic weapon that can
bring increased market share and increased profits. The problem companies face,
however, is exactly how to measure customer satisfaction and do it well. They need to
understand how to quantify, measure, and track customer satisfaction. Without a clear
and accurate sense of what needs to be measured and how to collect, analyze, and use
the data as a strategic weapon to drive the business, no firm can be effective in this
new business climate. Plans constructed using customer satisfaction research results
can be designed to target customers and processes that are most able to extend profits.
satisfaction. They watch sales volume. They listen to sales reps describing their
customers‘ states of mind. They track and count the frequency of complaints. And
they watch aging accounts receivable reports, recognizing that unhappy customers
pay as late as possible — if at all. While these approaches are not completely without
value, they are no substitute for a valid, well-designed customer satisfaction survey
program. It‘s no surprise to find that market leaders differ from the rest of their
industry in that they have programs in place to hear the voice of the customer and
Marketing and sales employees are primarily responsible for designing (with
groups.
6
Corporate evaluations include not only their own customer satisfaction ratings but
Customers are informed about changes brought about as the direct result of listening
to their needs.
Customer satisfaction is incorporated into the strategic focus of the company via the
mission statement.
program.
7
COMPANY PROFILE
Nestle India
honesty, integrity and fairness in all aspects of its business and expects the same in its
relationships.
Beginning with its first investment in Moga in 1961, Nestlé‘s regular and substantial
investments established that it was here to stay. In 1967, Nestlé set up its next factory
at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into
soluble tea. The Nanjangud factory (Karnataka), became operational in 1989, the
Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestlé commissioned two
factories in Goa at Ponda and Bicholim respectively. Nestlé India is now putting up
8
Good Food, Good Life Since The Turn of The Century
NESTLÉ's relationship with India dates back to 1912, when it began trading as The
selling finished products in the Indian market. After India's independence in 1947, the
economic policies of the Indian Government emphasised the need for local
and set up its first factory in 1961 at Moga, Punjab, where the Government wanted
NESTLÉ to develop the milk economy. Progress in Moga required the introduction of
NESTLÉ's Agricultural Services to educate, advise and help the farmer in a variety of
aspects. From increasing the milk yield of their cows through improved dairy farming
methods, to irrigation, scientific crop management practices and helping with the
procurement of bank loans. NESTLÉ set up milk collection centres that would not
only ensure prompt collection and pay fair prices, but also instil amongst the
9
prosperity on an on-going and sustainable basis that has resulted in not just the
transformation of Moga into a prosperous and vibrant milk district today, but a
thriving hub of industrial activity, as well. NESTLÉ has been a partner in India's
growth for over a century now and has built a very special relationship of trust and
commitment with the people of India. The Company's activities in India have
facilitated direct and indirect employment and provides livelihood to about one
million people including farmers, suppliers of packaging materials, services and other
goods The Company continuously focuses its efforts to better understand the
changing lifestyles of India and anticipate consumer needs in order to provide Taste,
Nutrition, Health and Wellness through its product offerings. The culture of
innovation and renovation within the Company and access to the NESTLÉ Group's
Company to create value that can be sustained over the long term by offering
consumers a wide variety of high quality, safe food products at affordable prices.
KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has
also introduced products of daily consumption and use such as NESTLÉ Milk,
10
Marketing mix of Maggi
Maggi is one of the most loved and eaten food products in India. Recently, with the
introduction of Aata Maggi and Oats Maggi, it is one of the healthier fast-food
the international brand ―Nestle‖. Founded in 1872, by Julius Maggi, the company has
its headquarters in Cham, Switzerland. Julius Maggi launched this product for
working women who did not have the time for cooking. It was originally a powdered
soup of bean and pea and besides nutritious was very easy to prepare. It was
appreciated to such an extent that even after one hundred and thirty years it is able to
hold its own in such a competitive market. Some of its competitors are
Knorr
Top Ramen
Yippee Noodles
However, none of the competitors have been able to reach the success levels which
Maggi has introduced numerous products in the market according to the needs and
tastes of its consumers.The brand has been known for its noodles, wuze, bouillon
cubes, instant soups, stocks, sauces, ketchups and seasonings. The products that have
surpassed the expectations of the people and have become a hit in the minds of the
consumer‘s are-
Maggi 2 Minute Noodles- The flagship product in the Maggi umbrella brand,
this product is available in five flavors that are Tricky Tomato, Chicken,
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Maggi Vegetable Multigrainz Noodles is a product that has Fiber, Calcium,
Maggi Vegetable Atta Noodles is made from wheat flour that has fiber content
Maggi Cuppa Mania is available in an easy cup format with two variants
Maggi Oats Noodles is an innovative, healthy and delicious dish that is made
Maggi Sauces
Maggi Pichkoo
Maggi Pazzta
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Place in the Marketing mix of Maggi
every plant is responsible for its own production. It follows a twofold path for
distribution. In the first, the product is available to every local store and the
second where the stock is available for every malls and shopping centers.
Retailer- The retailer in turn gets a 15% margin on promotional products and
The key ingredient in the Marketing mix of Maggi has been its distribution. It is one
thing to have a successful product in your hand, it is a completely different ball game
to ensure time and time again that this top of the line product reaches the nooks and
corners of the world. Even if you go in the Himalayas, you will find Maggi selling
there at select places. Isn‘t that something!! This single factor – distribution, has been
Maggi has a penetration pricing strategy because it knows it has to penetrate the
market the world over. There are many indirect competitors to Maggi as well. Maggi
has a very clear-cut policy regarding its prices. From its initial years it has kept
low pricing policy because, its consumers mostly belong to the average middle class
group. To make the product affordable they had to tone down their prices but the
volumes the product generates has helped the company in maintaining a healthy
13
profit. Therefore, the prices have always been kept normal without any dramatic
changes. In order to keep with the changing economic times Maggi has reduced the
quantity, instead of the prices. Along with this, to cater to the middle and low income
class customers, Maggi offers different sizes of packets at various prices so that the
When the parent company Nestle decided to launch Maggi in India, its promotional
activities included creating awareness amongst the females and kids. Toys and
utensils were offered as gifts along with packets of Noodles. This turned out to be a
huge booster for the brand and made it an instant household name. Maggi advertised
on kid‘s channels and between main programs in the television. Its tagline ―2 minute
noodles‖ is known to be the smartest tagline in the advertising industry and is still
very famous amongst the consumers. Till date, no one has been able to cook a Maggi
in 2 minutes J but still, people love the product for the quick way they can get an
excellent snack. Maggi has also announced many offers and schemes over the years to
attract its consumers like Fun books, free Maggi products, scratch and win coupons,
In an exciting commercial for Maggi Oats Noodles, a consumer can see the
famous Bollywood actors commending the product to the viewers. The convincing
advertisement has proved to be a hit with the audiences taking the company to new
heights. In all its campaigns, since the year 1982, the product has been advertised as
―2 minute noodles‖. The famous actor Amitabh Bachchan is also seen in the
You can see Maggi advertising heavily when it brings a new product in the market.
But time to time, it also advertises for product recall. For example, the Maggi masala
14
for ready made food is advertised time to time to keep the product in the minds of the
consumer. On the other hand, the 2 minute noodles are advertised heavily when there
15
SWOT of Maggi
From the house of Nestle, Maggi is one of the most known brands and the clear leader
in the packaged food segment. The tagline ―2 minutes noodles‖ is true to date. This is
because people love the taste of Maggi. And at the same point, the distribution of
the product is so far and wide that there have been stories written on ―Meri Maggi‖.
Moreover, the growing popularity of Maggi has spawned many related products as
well, leading to the rise of a complete umbrella brand in the name of Maggi. Such a
company is bound to have more strengths then weaknesses. So without further ado, let
1. With the presence in different product categories under the umbrella brand of Maggi
with large SKU‘s (Stock keeping unit).Maggi have edge over its competitors.
2. 1st Mover Advantage: Maggi has established itself a pioneer in changing the eating
habits & acceptance of Noodles as easy meal. Although now the market is full of local
& national players in different product categories but still Maggi Holds market
leader place .
3. High Customer Pull: With its distinguished promotion strategies & branding hence
creating strong customer connects had helped Maggi to have High TOMA score.
4. Distribution Channel: Robust & well established distribution channel of the parent
its success.
6. With rich history and financially stable parent company is on the growing path.
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Weaknesses in the SWOT analysis of Maggi
1. Risk of Over Dependence: Company is playing hard on the risk of over dependability
on Maggi Noodles, as 57% (2014) of the revenue of the brand Maggi comes from
Noodles knowing the fact that their market share has been decreased significantly (in
2012 ―84%‖ to 63% in 2014).Although with more & more competitors the market
2. Ill effects of Maggi: Awareness about ill effects of Maggi is gaining momentum with
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Opportunities in the SWOT analysis of Maggi
1. Brand Extension: Maggi can expand its product categories by venturing out in
corn flakes ,Chips & Pickles( Although it failed in 2003 but now with
presence of local & national players in this product category ,company can
2. Although it‘s been used majorly by the educated class in order to save their
time what if the long potential rural markets can also be penetrated with the
3. Also Company can target the Restaurants chains by offering some customized
or special offerings to make it more short of part of the daily life of the
consumers.
1. Competition: Tough competition from the local & national player is the area
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Overall, here is the SWOT analysis presented in a graphical format
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OBJECTIVES OF THE STUDY
20
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The
Research Methodology includes the various methods and techniques for conducting a
define Research as ―the manipulation of things, concepts or symbols for the purpose
contribution to the existing stock of knowledge making for its advancement. The
scientific procedures. Our project has a specified framework for collecting data in an
effective manner. Such framework is called ―Research Design‖. The research process
a research where in researcher has no control over variable. He just presents the
Information has been collected from both Primary and Secondary data.
Primary sources: - Primary data are those, which are collected afresh and for the
first time, and thus happen to be original in character. Primary data has been collected
by conducting surveys through questionnaire, which include both open- ended and
close-ended questions.
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Universe of the Study: - The universe of the study included respondents in
Lucknow.
Secondary Sources: - Secondary data are those which have already been collected
by someone else which already had been passed through the statistical process. In this
research project secondary source used were books, online journals and websites.
To analyze the data obtained with the help of questionnaire, following tools were
used.
Tools of Presentation: It means what tools were used to present the data in a
meaningful way so that it becomes easily understandable. In this research tools used
Tools of Analysis: In this research the tools of analysis used were Percentage
method.
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DATA ANALYSIS & INTERPRETATION
Frequency
Yes No
44%
56%
23
Ques2). Have you tried different variant of Maggi?
Response
Yes No
32%
58%
24
Ques3). Consumer of Maggi age group wise
Respondents
18-25 Years 26-30 years 31-40 Years 41-50 years
6%
26% 40%
28%
25
Ques4). Consumption of Maggi occupation wise.
Response
Students Parents Working Men/Women
30%
56%
14%
26
Ques5). Which Factor motivates you to buy this product?
Yes No
30 28
14
8
0 0 0
Response: In this analysis we found that consumer is 100% satisfied with ―Taste‖,
―Price‖, Ease to Make‖ and Out of 50 respondents 36 respondents are saying Maggi
noodles are not god for health (C-sat: 28%).
27
Ques6). Which of the following brand would you like buy if price is not taken into
consideration?
Brand you would like to buy ( when price in not a concern) Result Percentage
Maggi 40 80
Yippi 5 10
Top Raman 2 4
Wai-Wai 2 4
Knor 1 2
Total 50 100
Result
Maggi Yippi Top Raman Wai-Wai Knor
3% 2%
5%
10%
80%
Response: In this analysis we found that if price is not taken into consideration 80%
respondent will buy Maggi noodles and nearby competitor is Yippi noodles that is
10% Out of 50 Respondents
28
Ques7). On the basis of past experience would you like to buy the product again and
also suggest to you family and dear ones?
Respondents
Yes No
50% 50%
Response: Out of 50 respondents 25 respondents would like to buy and refer this
product to their family and dear ones, let alone customer satisfaction level of this
product is 50%
29
Ques8). What comes first in your mind when you hear the word Maggi?
Respondents
Noodles Fast food Snacks None of these
30% 31%
18%
21%
Response: Here we tried to check the perception of consumer towards the product and
we found that Out of 50 respondents for 15 respondents Maggi is just ―Noodles‖ and
for rest of the 9 respondents Maggi is a ―Snacks‖.
30
Ques 9). Which of the following Maggi variants do you relish?
Respondents
2 minutes-Masala Maggi Atta noodles Vegetable multi grain noodles Cuppa mania
20%
48%
11%
21%
31
On the basis of Motivation and Perception
Response
Outstanding Good Average Alarming
20% 22%
18%
40%
32
On the basis of Attitude
Respondents
Good Average Bad
20%
38%
42%
33
FINDINGS
There is high brand awareness about Maggi noodles, People have been able to
differentiate Maggi noodles from other products available in the market and have
positive perception.
Maggi noodles have a tough competition from Yippi noodles and Top Raman.
Maggi noodles have a strong distribution channel. It is easily available in the shops.
People are very satisfied with the price of the Maggi noodles.
People buy Maggi noodles because they see some nutritional value in the product.
Maggi noodles contain calcium & iron which is god for health. This product has not
appealed to health conscious people because there are other substitutes (health
34
RECOMMENDATION
Maggi should focus on creating a product that do not need any cooking.
It should strengthen the distribution channel of the rural areas within 100km of all the
metros.
It should launch new advertisement campaign (TV, radio, print media commercials)
The company should advertise its products by depicting attributes related to Health
like Nutrition values, % of Vitamins, Proteins etc. This would help in customers
Nutritional value should be improved like fat content should be reduced and other
35
LIMITATIONS OF THE STUDY
Time factor: The research was carried out in a short period. Therefore the sample
size and the parameters were selected accordingly so as to finish the work within the
Inadequate data: The data provided was not sufficient due to which the
Bias: The information given by the respondents might be biased some of them
Lack of knowledge: Some of the respondents could not answer the questions due
to lack of knowledge.
36
CONCLUSION
The food processing business in India is at a nascent stage. Currently, only about
10% of the output is processed and consumed in packaged form thus highlighting
frozen, but the trend is changing and the new fast food generation is slowly
changing. Riding on the success of noodles, Nestle India, tried to make extensions
of the Maggi brand to a number of products like, sauces, ketchups, pickles, soups,
Unfortunately, the macaroni and pickles didn‘t pick up as expected. The soups and
sauces did somewhat fine, gathering considerable sales volumes and have a
satisfactory presence even today. ‗Maggi Noodles‘ itself faced a bit of difficulty
with respect to ‗taste‘, and nearly lost its position in the minds of Indian consumers
When Nestle changed the formulation of its tastemaker, the ominous packet that
came along with Maggi Noodles, a major chunk of consumers were put-off and
sales started dropping. Also, Maggi‘s competitor ‗TopRamen‘ took advantage of the
situation and started a parallel aggressive campaign to eat into Maggi‘s market
share.
But the company quickly realised this and went back into making the original
This helped Maggi to win back its lost consumers and pushed up its sales volumes
again!Maggi Today The year 2008 saw India leading in worldwide Maggi sales.
37
BIBLIOGRAPHY
Thompson
Pearson Education
Education
Solomon, M. (1995) ―Consumer Behaviour‖ (3rd edition), New Jersey: Prentice Hall
38
QUESTIONNAIRE
Part A
___________________________________
2. Contact Detail :
____________________________________________________________
3. Age Group
18-25 years
26-30 years
31-40 years
41 to 50 years
Student
Parent
Part B
Yes
No
Yes
No
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7. Are you satisfied with the below mentioned features
Variable Yes No
Ease to make
Reliability
Quality Assurance
Loyalty
2 minutes-Masala Maggi
Atta noodles
Cuppa mania
9. Which of the following brand would you like buy if price is not taken into
consideration
Maggi
Yippi
Top Raman
Wai-Wai
Knor
40
10. On the basis of past experience would you like to buy the product again and
Yes
No
11. What comes first in your mind when you hear the word Maggi
Noodles
Fast food
Snacks
None of these
41