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© 2019 IJRAR March 2019, Volume 6, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

IJRAR1AEP077 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 408

MAGGI BAN AND ITS EFFECTS ON

CONSUMER DR.AMRITA MEHTA (FACULTY OF CDFST,UDAIPUR)

MISS. SADAF KHAN (BTECH.III YEAR DAIRY TECHNOLOGY)

ABSTRACT

Maggi-the more than 3 decades old brand has been serving us the most loved and tempting noodles since

1983.While in the year 2015,when it was ranked amongst the top 5 most trusted brands ,Maggi Noodles

suffered a nationwide ban for 6 months due to the presence of Monosodium Glutamate and lead contents

17 times higher than the permissible limits after the sampling and testing performed by Commissioner of

Food Safety ,Uttar Pradesh. This lead to chaos amongst teenagers, adults and especially parents .Before

the Maggi Noodles crisis, it used to dominate market with 75% share which drastically fell to 0% during

the ban . The purpose of this study is to find out the impact of Maggi noodles ban on consumer behaviour.

The primary data was collected from a random survey.100 respondents of Udaipur region of different age

groups were selected. The secondary data was collected from published materials like journals ,articles

and some other websites. This study discusses how Nestle targeted consumer’s emotions and sentiments

by starting the Maggi campaign and inviting everyone to share their Maggi moments hitting the

‘NOSTALGIA’factor. The results reflect how emotional branding helped Maggi in regaining its lost

customers .It also shows how consumer buying behaviour during the ban towards the other substitutes

changed .This study shows that no significant change in consumption of other Maggi products like

sauces, pazzta, cooking aids etc were observed. This study infers the customer’s trust and their loyalty

towards the brand they have been consuming since for a long time.

KEYWORDS: Consumer ;Ban; Crisis; Emotional branding; Brand loyalty;Brand image; Trust;

Controversy

1.INTRODUCTION

The 2 min Maggi noodles has our hearts since childhood.Maggi noodles are amongst the most affordable

packaged food item loved by children ,teenagers, hikers and their parents. For the students living away

from home in hostels,Maggi noodle is a life saver for them. The brand Maggi was the first brand and the

only one to bring instant noodles in India.nestle India launched its 2 minute noodles under the brand name

Maggi,going non mainstream to the Indian tastes and choices .Maggi grew at the rate of 15% in its initial

years due to its promotional schemes towards kids segment ,since then it has never looked back, and has

always maintained its top notch position in the Indian market and in our hearts. Maggi being a leader of

instant noodles industry in India, had a market share of about 70% before its bad days.On april 24,

2014,some samples of Maggi were sent to a lab in Gorakhpur which reported that Maggi noodles

contained MSG .Nestle was adamant on their purity of the products and appealed against the report ,as

they said occurrence of MSG was due to its ingredients which naturally contains it.The samples were then

sent to the central food lab in Kolkata, a gov. referral lab which gave results after a year and reported that

Maggi samples contained excessive amount of lead upto 17.2ppm as compared to 2.5ppm.On june

2015,FSSAI ordered the withdrawal of Maggi noodles across India. August 2015 – Tests performed by

the US health regulator FDA showed no dangerous lead levels in the products. On 13 August 2015, the

nationwide ban was struck down by the Bombay high court. The court stated that proper procedure was

not followed in issuing the ban and called into question the test results, as the samples were not tested at

authorized laboratories accredited to the National Accreditation Board for Testing and Calibration

Laboratories (NABL).

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Impact of Maggi Row in India

Maggi noodles make upto 30% of the Nestle’s revenue. Maggi is now known to be a synonym of instant

noodles in India .After the biggest nightmare of Nestle India ,the market share of Maggi which was near

about 70% ,suddenly dropped to 0%.Around 1.5k workers and employers were directly affected by the 6

months nationwide ban of Maggi noodles .Hundreds of contractual workers lost their job .Even major

suppliers of the raw materials like spices have also been affected .Nestle suffered a loss of about $200

million in brand value .Even the brand ambassadors and promoters were in trouble .Many consumers

have filed case against them for promoting Maggi as a healthy food which was proved to be of opposite

nature .Due to such controversy of world’s biggest brand, consumers have become conscious towards

their eating habits .Consumers have become aware of the labels and the ingredients used .Inspite of this,

some substitutes like Patanjali noodles were launched during the ban ,claiming the product to be 100%

safe and healthy .Market share of brands like ITC YIPPEE rose from 15% to 50% during the ban period.

Comeback Of Maggi

After the ban ,it was sure that Nestle was fully power packed to relaunch its Maggi noodles.To attract its

lost customers ,the brand started “MAGGI CAMPAIGN” where customers were asked to share their

Maggi moments with everyone .Social media was used as a very big platform for spreading the MAGGI

WAVE again. Maggi brand used NOSTALGIA as the major factor and made advertisements which were

directly targeted to the customer’s sentiments. Maggi played its cards very smartly by relaunching Maggi

packets exclusively on snapdeal before its official launch date. Under few minutes all the packets were

sold out.

2.LITERATURE REVIEW

ACCORDING TO SAIKAAT BANERJEE(2017)”Results indicate that respondents, with higher post-

controversy brand loyalty, hold positive attitudes about brand. The interaction effect reveals that the

relationship is significant and positive. ‘’He also concluded that during controversy its very difficult to

judge consumer behavior.

ACCORDING TO GANGA S.DHANESH ,KRISHNAMURTHY SRIRAMESH(2018) stated the “ It is

evident that Nestlé's crisis response was governed more by its traditional corporate culture than by an

ability to keep pace with the changing demands of its environment, leading to the amplification of an

issue into a crisis.They also concluded that if any MNC ignores the cultural aspect,it will have to face the

negative consequences.

ACCORDING TO MANJARI PANDEY , PROF G.L PUNTAMBEKAR(2017)For increasing

sales,Maggi has adopted many strategies for attracting customers like marketing

research,advertisements,slogans etc.They also stated that “Over the time consumers developed emotional

bonding and it has become trust of consumers.

ACCORDING TO SUMAN MISHRA(2017), Their study was conducted to know consumer point of

view. It investigated the perception of Indian mothers. Their findings revealed” three types of

customers—the devotees, doubters and dropouts—who had different perceptions about the crisis and

attributed different levels of responsibility to the corporation based on their attitude and affect toward the

brand, attitude toward the corporation, attitude toward the regulatory institution, and levels of

nationalism.”.They recommended that the strategies should not only focus on what type of crisis has

happened but also should pay attention on the type of consumers it should target the most.




ACCORDING TO DEBASIS BHATTACHARYA, SHUVENDU DEY(2017) It is observed that wrong

and negative advertisements can affect brand image as well as brand loyalty to a greater extent.The

loyalty can be also affected when a company hides about the ingredients which can be harmful for health.

ACCORDING TO SHABISTA BOOSHAN, RITTIKA DAS (2017)due to ban,Maggi competitors got a

very good chance to grow at that stage. Many new substitutes were also launched during the

ban.Also,ITC YIPPEE noodles jumped from 10-12% market share to upto 50% during the ban

period.Wai-Wai Noodles also took aggressive marketing strategies to cover up the market and increase its

sales.Patanjali’s Atta Noodles were also launched to shift the consumer towards healthy lifestyle.Maggi,

in August 2015, came up with the ‘Miss You Maggi’ Ad campaign on social media which involved

young adults and children’s sentiments and wich hit the nostalgia factor.

ACCORDING TO Garg (2015, )studied the impact of ban on Maggi’s employees, suppliers, share

market, consumers, brand ambassadors, and competitors.1500 employees were affected directly due to

the Maggi ban. Maggi ban also affected the consumers’ buying behavior towards packaged food industry.

ACCORDING TO Dr. A SivakumarAnd Ms. S. Shyamala(2015),the success of any company is behind

creating new customers as well as retaining the old ones.tTherefore manufacturers should always identify

the market,customer type to be targeted for better results.It should keep innovating new ideas and follow

up good marketing strategies

ACCORDING TO. DR. Moloy Ghoshal, Ms. Megha Vohra, (January, 2016) have suggested that the

Marketing and Promotional Strategiesthat are adopted by Nestlé India Limited for Maggi over the years.

And also to know about the market position of Maggi as a Brand, how they survived in the past, whatall

strategies they adopted to become a wellknown and well established brand and the recent controversy of

Maggi and its effect in the market and on the consumers.

ACCORDING TO Soni P.K,.Dr. C.K. Harnawale(2016),” it has been observed that the MNCs focus

preferably on economic, legal and philanthropic activities by neglecting ethical responsibilities which are

equally important. This negligence sometimes results in tragedic effects on the society. “

3.HYPOTHESIS

The present study is carried out with the following hypothesis:

H0:There is no significant relationship between quality and consumption of Maggi noodles.

H1: There is a significant relationship between quality and consumption of Maggi noodles.

H0: There is no significant relationship between advertisement and purchase of noodles.

H1: There is a significant relationship between advertisement and purchase of noodles.

4. RESEARCH METHODOLOGY

4.1 PROBLEM OF STATEMENT

The project has been undertaken to study the Maggi ban and its consequences on related factors in

Udaipur city .It also identifies the effect of Maggi ban on consumer’s choices ,their consumption

frequency of the Maggi noodles and their attitude towards other substitutes. The brand loyalty of

consumers towards Maggi has also been studied.It also studies about the effect of advertising and other

marketing strategies which helped the brand to regain its lost customers. It also studies about other

competitors and their popularity during the ban.




4.2 OBJECTIVES OF THE STUDY

1. To study the impact of Maggi noodles ban on the consumption frequency of the 2 min Noodles.

2 .To study the parameters which helped Maggi in regaining its lost customers.

3 .To identify which product of the Maggi brand is consumed the most.

4. To study the factors which make Maggi noodles very popular.

5. To study the attributes which hold the most importance for the purchase of Maggi noodles.

4.3 SAMPLE DESIGN

1. Sampling Techniques Used: Convenience sampling technique has been undertaken in this research

work.

2.Sample Size :For this study, a sample of 100 respondents irrespective of age,gender,category were

taken.

3. Data Collection Instrument: Both online and offline questionnaires were used for data collection.

4. Sample Collection Time: Duration of 15 days was taken for sample collection.

4.4 SOURCES OF DATA COLLECTION

1.Primary Data-The primary data collected through a field survey and were analysed using SPSS-24

software ,mathematical and statistical techniques etc have been employed for data analysis.

2.Secondary Data-The secondary data was collected from published journals, articles , research papers

,magazines and internet.

5.ANALYSIS AND INTERPRETATION

A.)The table and chart below shows the age and gender profile of the respondents respectively:

AGE GROUP NO.OF RESPONDENTS PERCENTAGE

15-20 41 41%

20-25 48 48%

25-30 2 2%

30 AND ABOVE 9 9%

TOTAL 100 100%

Source-Survey data




B.) Respondents were asked about the products which they consume the most of the brand Maggi.

Interpretation:As shown above,Maggi brand customers consume the instant noodles the most,as 78%of

them ranked it number 1 .9% of the repondents voted for Maggi sauces and 8% for cooking aids

especially masala-ae-magic while very less no. of people i.e.,5% voted pazzta as rank 1.

C.) Consumption frequency of MAGGI NOODLES

0

20

40

60

80

NOODLES SAUCES COOKING AIDS PAZZTA

78

9 8 5




INTERPRETATION: The above table shows most of the people eat Maggi on weekly basis, followed

by 24%of respondents eating it once in a month .Very few, around 8% of people eat it daily . Rest have

no particular pattern of consuming it.

D).Change in consumption frequency of Maggi noodles.

INTERPRETATION :According to the survey ,most of the people around 58% had no impact on their

consumption frequency after the ban.18 % of the respondents accepted that after Maggi ban their

consumption of Maggi noodles increased while 24% decreased their consumption of the noodles.

E).Trust issues with Maggi noodles.

INTERPRETATION:Amongst 100 respondents, 47 of them had no trust issues with the brand while 31

of them were not sure when it came to trusting the brand again.22 of them don’t trust the brand after the

controversy.




F).Substitutes and competitors of 2-min Maggi noodles during the ban

INTERPRETATION: The study shows that YIPPEE was amongst the most consumed noodles during

the ban ,followed by CHING’S SECRET NOODLES and then PATANJALI NOODLES. Around 8% of

the respondents didn’t shift to any other brand and stopped consuming noodles until Maggi was

relaunched.

G).Did Advertising And Marketing Strategies(Like Maggi Campaign And Advertisements)

Influenced Customers To Trust The Brand Again?

INTRPRETATION :Amongst 100 of the respondents,63 of them were greatly influenced by the Maggi

campaign while rest of them were not influenced by such advertising strategy.

17

118

38

26

0

5

10

15

20

25

30

35

40

CHING'S SECRET NOODLES PATANJALI NOODLES TOP RAMEN

SUNFEAST YIPPEE DIDN’T SHIFT TO ANY BRAND

0 10 20 30 40 50 60 70

YES

NO




H)Rating The Maggi Noodles On The Basis Of Given Parameters .

The above chart shows the results of how consumers have rated different parameters according to their

choices.

I).How Customers View The Importance Of The Parameters Mentioned Below Which Helped

Nestle In Regaining Its Trust?

i)

GOODWILL AGREE UNCERTAIN DISAGREE TOTAL

NO. OF RESPONSES

(PERCENTAGE)

75 15 10 100

Source-Survey data

INTERPRETATION : According to the above table,75% of the respondents agreed that Nestle’s

goodwill helped in regaining trust while 15% of them were uncertain about this and 10%of them

disagreed to the fact.

ii)

BRAND IMAGE AGREE UNCERTAIN DISAGREE TOTAL

NO. OF RESPONSES

(PERCENTAGE)

78 9 13 100

Source-Survey data

INTERPRETATION :According to the above table,78% of the respondents agreed that Nestle’s brand

image helped in regaining trust while 9% of them were uncertain about this and 13%of them disagreed to

the fact.

iii).

CUSTOMER’S TRUST AGREE UNCERTAIN DISAGREE TOTAL

NO. OF RESPONSES

(PERCENTAGE)

66 23 11 100

Source-Survey data

25

9

16

12

12

2

25

5

15

12

12

35

11

23

22

23

17

14

24

24

38

14

54

26

30

0% 20% 40% 60% 80% 100%

TASTE

VARIETY

AVAILABILITY

PACKAGING

PRICE

VERY POOR

POOR

OK

GOOD

VERY GOOD




INTERPRETATION: According to the above table,66% of the respondents agreed that the trust Nestle

has build up in past years helped them in regaining its lost customers while 23% of them were uncertain

when it came to trusting the brand and 11%of them disagreed .

iv).

NOSTALGIA AGREE UNCERTAIN DISAGREE TOTAL

NO. OF RESPONSES

(PERCENTAGE)

59 21 20 100

Source-Survey data

INTERPRETATION: According to the above table ,59% of respondents think that nostalgia was a

major factor in regaining customers back while 20%of them disagreed to this fact.21% were uncertain

about the nostalgia factor.

J).Did Maggi Noodles Ban Had Any Impact On Consumption Of Any Other Maggi Products (Like

Pazzta,Sauces Etc.)

INTERPRETATION:About 76% of the respondents had no impact on purchase of products of Maggi

brand which shows consumers still had trust on Maggi brand as a whole.

K).Which Aspect Convinces The Consumer Most To Buy Maggi?

24

76

YES

NO

0

5

10

15

20

25

30

35

40

11

34

39

79

HEALTHY

READILY MADE

TASTY

AFFORDABLE

EASILY AVAILABLE




INTERPRETATION :According to the above data, maximum number of the respondents ranked taste

as the prior aspect which convince them to consume it followed by its ready to cook aspect.Very less

people gave priority to affordability ,availability and healthy effects.

6. FINDINGS OF THE STUDY:

1. Majority of the Maggi consumers belonged to 15-25 age bracket.

2. During Maggi ban ,ITC YIPPEE noodles became very popular.

3. For more than half of the people, consumption frequency of the Maggi noodles didn’t change adding to

that, 18% of them admitted that it even increased after the ban

4. Amongst different products of Maggi brand, noodles are the most loved and purchased product is

Maggi noodles followed by Maggi sauces.

5 .People who were greatly influenced by the advertisements accounted for 63% of the total .

6, Maximum number of respondents(39%) gave priority to taste followed by its ready to cook(34%)

aspect.

7. About 76% of respondents didn’t stop using Maggi brand other products .

7 .LIMITATIONS AND SCOPE FOR FURTHER RESEARCH

The research can be more accurate in the future as the study is limited to the consumers in Udaipur City

therefore there is a scope of research which may include a different and larger geographical area .Time

was a limiting factor while distributing and collecting data through surveys. Samples taken cannot be

considered wholly as representative of the entire population. This study was based on 100 samples

,therefore the sample size can be increased for future research work.

8. CONCLUSION

Maggi consumption is more amongst the consumers falling under 15-25 age bracket. Majority of the

people consume Maggi on a weekly basis. After the ban, Maggi campaign and other strategies helped the

brand to bring back the customers’ trust as well as fast recovery of the loss happened . Maggi has not

only gained customers throughout the country in past years but also have managed to retain them which

shows appreciable brand image and goodwill of the brand in market .The brand loyalty of customer

towards the brand Maggi is very high and as soon as the ban uplifted ,the customers started consuming

Maggi again due to the trust Maggi brand has built up in past years. Nostalgia was a major factor which

convinced the majority to trust the brand again.

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http://shodhganga.inflibnet.ac.in/bitstream/10603/40658/9/09_chapter%204.pdf

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