CITY COLLEGE OF COMMERCE AND BUSINESS

ADMINISTRATION

PROJECT LAY OUT

SUBJECT: PROJECT WORK

PAPER-CC 6.1Ch

B.COM (HONOURS)

SEMSTER VI

TOPIC: GUIDELINES FOR PREPAIRING PROJECT WORK

NAME OF TEACHER: DR. BARUN KUMAR DAS (BKD)

YEAR : 2020
(I) COVER PAGE:

Project Report

(Submitted for the Degree of B.Com, Honors in Accounting & Finance/Marketing / ……………
Under the University of Calcutta)

Area / Topic of the Study

XXXXXXXXXXXXXXXXXXXXXXX

Title of the Project

XXXXXXXXXXXXXXXXXXXXXXXX

Submitted by

Name of the Candidate …………………………………………

C U Registration No……………………………………………….
C U Roll No……………………………………………………………

College Roll No: ………..

Supervised by

Name of the Supervisor:

Name of the College: City College of Commerce and Business Administration

Month & Year of Submission

……….., 2020
 PAGE NO.-1
(II) ACKNOWLEDGEMENT

ACKNOWLEDGEMENT

It is a matter of great pleasure to present this project on

“….........................................................................................................................................................”
I take this opportunity to thank our respected Principal Dr. Sandip Kumar Paul for giving me an opportunity
to work on this field.
I am grateful to our respected Vice- Principal Prof. Tarasankar Maiti without whom this project would not
have been successful.
I am very thankful to my Supervisor …………………… for his/her full support in completing this project
work.
Finally, I am grateful to acknowledge my family and friends and all the teachers who filled the questionnaire
providing me full support and coordination without which this project wouldn’t be possible.

Name of Student
PAGE NO.-2

Annexure – I

Supervisor’s Certificate

This is to certify that Mr..............................................................................................a student of B.Com Honors

in
Accounting & Finance of City College of Commerce and Business Administration under the University of
Calcutta has worked under my supervision and guidance for his Project Work and prepared a Project Report
with the title
………………………………………………………………………………………………………………………
…………………………….

The Project report, which he is submitting, is his genuine and original work to the best of my knowledge.

Signature :
Place : Name :
Date : Designation :
Name of the College :

Annexure- II
Student’s Declaration

I hereby declare that the Project Work with the title (in block letters) …………………………………………..
………………………………………………………………………………………………………………………
…………………………….
submitted by me for the partial fulfillment of the degree of B.Com. Honours in Accounting & Finance under the
University of Calcutta is my original work and has not been submitted earlier to any other University /
Institution for the fulfillment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated in this report from any
earlier work done by others or by me. However, extracts of any literature which has been used for this report
has been duly acknowledged providing details of such literature in the references.
Signature :
Place : Name :
Date : Address :
C.U. Registration No.
C.U. Roll No.
PAGE NO.-3
TABLE OF CONTENTS
(Page-wise listing of the main contents in the report, i.e., different Chapters and its main
sections/sub-chapters along with their page numbers).

Chapter Contents Page

Number Number
1 Introduction

1.1 Background of the Study topic

1.2 Justification of the Title

1.3 Literature Review

1.4 Objectives of the Study

1.6 Methodology

1.7 Limitation of the Study

1.8 Chapter planning

2 Conceptual framework
2.1 Short description of terminology
2.2 National Scenario of the Study
2.3 International Scenario of the Study
3 Presentation of Data, Analysis and findings
4 Conclusion And Recommendation

Bibliography
 (IV) BODY OF PROJECT REPORT

(The body of the report should have these four logical divisions/chapters.)

1. Introduction (10 Marks) :[ Page No.4 & onwards but not more than 3 to 4 pages].

(a) Background of the Study Topic

(b) Rational/need/justification of the study topic

(c) Brief Review of Literature of the Study Topic

(d)Objectives of the Study Topic

(e) Methodology of the Study : (i) Area of the Study Topic

(ii) Sample

(iii) Type of the Study

(iv) Tools for Data Collection

(v) Method of Analysis

(f) Limitations of the Study

(g) Chapter / Parameter Planning for achieving the objectives

2. Conceptual Framework / National / International Scenario (5 Marks)

[Page -not more than 1 to 3 pages] (Relating to the topic of the Project).

(a) Short Description of Terminologies used in the Study

(b) National Scenario of the Study Topic

(c) International Scenario of the Study Topic

3. Presentation of Data, Analysis and Findings (25 Marks)

[Pages- As per requirement] (As per using the tools and techniques mentioned in the

Methodology).

(a) Tabular Presentation of Numerical Data Parameter wise

(b) Diagrammatic Presentation of Numerical Data Parameter wise

(c) Analysis Parameter wise

(d) Writing of Findings of all Parameters in single place

[Above mentioned Steps must follow the Methodology of the Study]

4. Conclusion and Recommendations (10 Marks)

5. [Page – not more than 1 to 2 pages] (The concluding observations based on the main findings and
suggestions are to be provided)

(a) Writing Main Findings in Short Language i.e. Concluding Observations

 (b) Recommendations / Suggestions for further development of the Study Topic

BIBLIOGRAPHY / REFERENCES

[one page only] (This section will include the list of books and articles which have been used in the
project work and in writing a project report).

1. Mention the Article and write name of Journals / Magazine in alphabetical order.

2. Write Name of Books and Author in alphabetical order.

3. Write websites from where you have taken help.

4. Mention any Other Sources in alphabetical order.

Sample/Example:
1. Book:
Example: Financial Accounting, Author – A Mukherjee, M Hanif, Publisher – Tata McGraw Hill
Education Private Ltd, New Delhi, 10th Reprint 2010

How to write for this purpose:

Mukherjee, A., & Hanif, M. (2010). Financial Accounting, New Delhi: Tata McGraw Hill Education
Private Ltd.

2. Journal:
Example: Name – Indian Accounting Review, Author – Arpita Ghosh, Publisher – IAARF, Year of
Published – 2015, Vol and Issue – 19 and 2, Title of the article – Corporate Governance and corporate
sustainability linkages: Evidence from India, pages No.21-25.

How to write for this purpose:

Ghosh, A. (2015). Corporate Governance and corporate sustainability linkages: Evidence from India,
Indian Accounting Review, 19(2), 21-25.
 3. Web-site (Internet):
www.caluniv.ac.in
www.tatasteel.com
www.itchotels.in
www.itcportal.com
ANNEXURE

1. Questionnaires (if Any)

2. Relevant Reports (if Any)

NOTES

STUDENTS ARE TO BE FOLLOWED:-----------

(I) The soft copy of the Project Report (final) will be submitted to the Supervisor by the Students
in Pdf format with the following specifications:
(i) Font style – Times New Roman
(ii) Font Size – 12 pts (only body of the report)
(iii) Paragraph – Justified
(iv) Space between the lines – 1.5
(v) Margin in all sides – 1”/2.5 cm.
(vi) Paper size – A4
(II) The main text of the Project should normally be in the range of 5000 words. However,
there may be annexure in addition to the main text.
(III) Three typed and spiral – bound copies of the Project Report are to be prepared by
the student. Two copies of the Project Report are to be submitted to the college and one copy is to
be retained by the student which he must bring at the time of viva-voice examnation.
 SAMPLE
ON
PRIMARY DATA BASED PROJECT WORK
 A Project Report Submitted for partial fulfillment of the degree of B.Com Honours in Accounting & Finance
under the University of Calcutta.

TOPIC OF THE STUDY

BRAND PREFERENCE

TITLE OF THE PROJECT

“BLAME GAME TO RISE TO FAME – A STUDY ON NESTLE MAGGI NOODLES”.

SUBMITTED BY
NAME:
C.U. REGISTRATION NO.:
C.U. ROLL NO.:
NAME OF THE COLLEGE:
COLLEGE ROLL NO.:

SUPERVISED BY
NAME OF THE SUPERVISOR: DR. BARUN KUMAR DAS
NAME OF THE COLLEGE:

YEAR OF SUBMISSION
2019
 ACKNOWLEDGEMENT

It is a matter of great pleasure to present this project on

“BLAME GAME TO RISE TO FAME – A STUDY ON NESTLE MAGGI NOODLES”
I take this opportunity to thanks our respected Principal…...................for giving me an opportunity to work on
this field.
I am eagerly grateful to our Head of the Department/ Vice-Principal........................without whom this project
would not have been successful one.
I am very thankful to my supervisor Dr. Barun Kumar Das for his full support in completing this project work.
Finally, I gratefully acknowledge the support of my family/friends and would also like to thank to all the people
to whom I had visited during my survey who had given me full support and co-operated with me to carry out
this research work and help with me for the project work by filling up the questionnaire/report.
ANNEXURE- 1
SUPERVISOR’S CERTIFICATE
This is to certify that Mr…......................., a student of B.Com Honours in Accounting and Finance of
…………………. College under the University of Calcutta has worked under my supervision and guidance for
his Project Work and prepared a Project Report with the title BLAME GAME TO RISE TO FAME – A
STUDY ON NESTLE MAGGI NOODLES, which he is submitting is his genuine and original work to the best
of my knowledge.
Signature:
Name:Dr. Barun Kumar Das
Designation:
Name of the College:

Place: Kolkata
Date: 2019

ANNEXURE- 2
STUDENT’S DECLARATION
I hereby declared that the Project Work with the title BLAME GAME TO RISE TO FAME – A STUDY ON
NESTLE MAGGI NOODLES, submitted by me for the partial fulfillment of the degree of B.Com Honours in
Accounting and Finance under the University of Calcutta is my original work and has not been submitted earlier
to any other University/Institution for the fulfillment of the requirement for any course of study.
I also declare that no chapter of this manuscript in whole or in part has been incorporated in this report from
any earlier work done by others or by me. However extracts of any literature which has been used for this
report has been duly acknowledged providing details of such literature in the references.
Signature:
Name:
C.U. Registration No.:
C.U. Roll No.:
College Roll No.:

Place: Kolkata

Date: 2019
 INDEX
CHAPTERS TOPICS PAGE NO.
Acknowledgement 1
Supervisor’s Certificate 2
Student’s Declaration 3
CHAPTER-1 Background 4-5
INTRODUCTION Justification of the study 5
Brief Review of Literature 6
Objective of the Study 6-7
Methodology of the Study 7-8
Limitations of the Study 8
Chapter Planning 9
CHAPTER-2 Concepts 10-12
CONCEPTUAL National Scenario 13-14
FRAMEWORK
CHAPTER-3 Presentation of Data, 15-30
PRESENTATION AND Application of Statistical Tool
DATA ANALYSIS and Interpretation
Findings 31
CHAPTER-4 Conclusion 32
CONCLUSION AND Recommendations 32-33
RECOMMENDATIONS
CHAPTER-5 Bibliography 34
BIBLIOGRAPHY AND Annexure :
RECOMMENDATION Questionnaire 35-41
 CHAPTER-1
INTRODUCTION
BACKGROUND

Maggi as a brand was established in 1863 in Switzerland, when Julius Michael Johannes Maggi developed a
formula to bring greater taste to meals. In 1882, the Swiss Public Welfare Society authorized Maggi to come up
with a vegetable food product that is easy and quick to prepare, to help with the problem of women having less
time in the kitchen. This led to the creation of two instant pea soups and an instant bean soup that reached the
height of success. In 1947, Maggi merged with Nestle and since then it has been providing high quality and
innovative products to the world.
Maggi has captured the hearts of millions around the world because it understands the needs of the people and
manages to meet these demands. For example, in 1980s, when there was a huge increase in the number of
women joining the workforce, Nestle India introduced Maggi 2 Minute Noodles to the Indian crowd. This is
how Maggi revolutionized the instant food industry, particularly the instant noodles segment. When eating
habits of people changed, Maggi tweaked its products to include low-fat bouillons.
When Maggi was launched in India in the 1980s, there was no direct competition from instant noodle brands.
However, there was competition from other snacks that Indians had been fond of for decades. However, most
of these snacks are purchased from roadside stalls and are relatively unhygienic and unhealthy. So, Maggi
positioned itself as the only hygienic homemade brand. It decided to target working women who did not have
much time to prepare elaborate meals in the kitchen. However, Maggi realized later, through surveys, that
children were the largest consumers of Maggi noodles. Thus, Maggi repositioned its brand towards the kids
segment and included various promotional tools such as sketch pens, color pencils and fun books to entice
children and this worked wonders for the brand.
Due to its promotional activities, Maggi’s annual growth grew by 15% during its initial years and today, Maggi
is the leading brand in the instant noodles segment in India with a market share of 79.3%. Maggi is worth Rs
200 crores and contribute to approximately 10% of Nestle India’s top line. Being a pioneer in the noodles
market in India has definitely given Maggi a boost and first mover’s advantage over other brands. Maggi is
slowly but surely widening its market to reach out more and more people. Today, Maggi has introduced
vegetable and dal atta noodles to cater to those who are health conscious.
Maggi’s products come in travel packs as well as bulk packs, to cater to those who look for convenience while
travelling and those who are price sensitive and prefer to purchase food in bulk. Maggi is one of the few
brands to have taken the time to understand its consumers and their requirements, which is why it is one of the
most successful brands, not only in India but in the world.
JUSTIFICATION OF THE STUDY
Maggi is the most liked noodle brand among Indian population. Long way since their introduction in 1983 in
India it was consumed almost in every household (prior to the lead and MSG controversy). Maggi which was
initially considered a snack had taken the place of a staple diet in many Indian homes but the news about the
presence of lead and MSG above the permissible limits startled the crowd and it created a huge controversy
leading to the banning of Maggi.
So I wanted to study the whole phases from the fall of such a huge brand of noodle for a single controversy to
the factor that cause it to rise again gaining back the earlier position in the market and the reasons of arising
such controversy. Besides I also wanted to know the impact of the controversy on consumers and their opinion
about this controversy in order to understand how Nestle Maggi Noodles case affected the psyche of its
consumer. Nestle Maggi Noodle had captured the maximum share of the market prior to the controversy; the
study of the project helped me to find out the huge changes in the noodle market after the Maggi controversy.
Now, Maggi came back to the shelves in India in November 2015. Nestle has also been running a campaign to
win back trust of the Indian community.
BRIEF REVIEW OF LITERATURE
Economics Times, 2003[1] feels that, if “Xerox” is for Photocopies, “Colgate” is for Toothpaste, then “Maggi”
is for Noodles.
According to Martial Rolland [2], chairman, Nestle India Ltd., in 2006, “Maggi is the leader because it is
constantly improving its understanding of the consumer to give them excellent and tasty products that provide
nutrition, health and wellness.”
JagerWender[3] says, “It is not the frequency of behavior that determines the strength of a habit, but the degree
to which that behavior has been automated and is being performed without cognitive elaboration”.
Business Week [4], a prominent business magazine, in 2006 published that, “Maggi has managed to enter
Indian homes to change the traditional food habits of Indian children on their promise of convenience. This
brand has understood the psychology of Indians mothers and positioned itself for mother-child indulgence.”
ZorawarKalra [5] says, “I must say I fell in love with it – before the government banned foie grass. It’s ironic
that the other half of this delectable dish, Maggi, is also heading towards a nationwide ban”.

OBJECTIVE OF THE STUDY

The main objective of the study is:
 To study the reasons that makes Nestle Maggi a favourite among consumers.
 To understand how the criticisms of lead in Maggi were received by the public and how was it
taken care of by Nestle.
  To find out those competitors of Nestle that gained foothold during the downfall of Maggi.
 To study the effect on sale of Maggi in the ban phase.
 To do a research on the factors that enabled Maggi to make a comeback after this case.
 To understand how its comeback was received by the people.
 To make a judgement on the present position of Maggi and the reasons that has kept it still a
favourite among the people.

METHODOLOGY OF THE STUDY

1. Primary Data – Primary data has been collected through questionnaire. The questionnaire has been
prepared to collect the data that is useful to conduct the study for the project. The questionnaire is
filled by the respondents and provides the information to fulfill the objectives of the study.

2. Secondary Data – Secondary data is the data which has been already collected and assembled by
other persons and the details of which are given in the internet, newspapers and magazines. The project
also contains secondary data collected from the internet and newspapers for details study of the
project.

Sample Size:
A total of fifty respondents were interviewed during the survey. The inputs from the respondents which were
collected in the city of Kolkata formed the primary data for the study.

Sample Method:
Sampling may be defined as the selection of some part of an aggregate or totality on the basis of which
judgement about the aggregate or totality is made. Convenience sampling technique is used in the study.

Tools for Data Collection:

Interactions with the respondents are done in the form of face to face interviews with the help of
questionnaires. The questionnaire consisted of combination of open and closed ended questions.

Method of Analysis:
The collected data were analyzed according to the objectives of the study based upon which suitable
suggestions are made. Collected data was tabulated with the help of bar graph, pie graphs analysis is done for
each data. The percentage, frequency is worked and evaluation is made to the tabulated data in the analysis
process. Lastly, the conclusion is drawn on the basis of the findings.

LIMITATIONS OF THE STUDY

Findings of the survey were based on the assumption that the respondents were unbiased while giving
the information.
 The study was restricted to the city of Kolkata and so the findings are applicable only to the city
of Kolkata.
 The information collected from the internet and newspapers are assumed to be correct.
 The time limitation is one of the factors which influence the study.
 The sample size is very small i.e. only 50 respondents.

CHAPTER PLANNING
Chapter 1: INTRODUCTION – In this chapter I have discussed the background of the topic, literature review
of the study, objectives of the study, methodology of the study and some limitations of the study has also been
discussed.

Chapter 2: CONCEPTUAL FRAMEWORK – In this chapter the journey of the establishment of the Nestle as
one of the popular brand has been discussed and along with it the case study on banning Nestle Maggi
Noodle was also discussed.

Chapter 3: PRESENTATION AND DATA ANALYSIS AND FINDINGS – In this chapter there are some
data presentation based on questionnaire with the help of pie charts, bar graph, etc. are given along with which
the findings were also discussed.

Chapter 4: CONCLUSION AND RECOMMENDATION – In this chapter the ultimate result of the Nestle
Maggi noodle after the case on it was discussed which had drawn the conclusion line on the behavior of
the consumers.

Chapter 5: BIBLIOGRAPHY AND ANNEXURE – This chapter contain bibliography and annexure including
student declaration and supervisor’s certificate.
 CHAPTER-2
CONCEPTUAL FRAMEWORK
CUSTOMERS
By customer, we mean a person who buys the goods and services and pays the price thereof. The word
customer is derived from the term ‘custom’ which means ‘practice’, so the word customer means the individual
or entity who purchases product or service from a seller at a regular intervals. It can also be known as client or
buyer. They are divided into two categories:
• Trade Customers: The customers who purchase goods in order to and value and resell them. These
include Manufacturers, Wholesalers, Distributors, Retailers etc.
• Final Customers: They are the customers who purchase it either for their own use or to hand over it to the final
user.
The customers are regarded as the king in every business because they help in earning revenue. The businesses
focus on converting shoppers into buyers. They also try to maintain a good relationship with the customers in
order to keep the business going. There are three kinds of customers:
• Former customers or ex-customers
• Existing customers
• Prospective customers

CONSUMERS
We define consumer as a person who is the end user of the product. The word consumer is derived from the
word ‘consume’ which means ‘to use’. In this way, the word consumer means a person who purchases the
product or service for his own use or consumption.
As per the Consumer Protection Act, 1986, it does not include the person who purchases the commodity for the
purpose of adding value or resale for any commercial purpose. However, a person can use those goods or
services to earn livelihood or self-employment. Any type of user, other than the buyer who purchases the goods,
consumes the goods by taking permission of the buyer will also come under the category of Consumer. It
includes the person who avails the services for any consideration. Moreover, the beneficiary of such services
will also be regarded as the consumer. There are three Consumer Protection Council in India:
• At national level: Central Protection Council
• At state level: State Protection Council
• At district level: District Protection Council

KEY DIFFERENCES BETWEEN CUSTOMER AND CONSUMER

The fundamental differences between customer and consumer, in marketing are as follows:
1. The person who buys the goods or services from a seller is known as the Customer. The person who uses
the goods or services is known as a Consumer.
2. The customer is also known as buyer or client whereas the consumer is the ultimate user of the goods.
3. The customer can be an individual or a business entity while a consumer can be an individual or a family or
a group of people.
4. Customer pays the price of the product or service, however he/she may recover it from the other party, in
case if he/she had purchased it on behalf of any person. Conversely, consumer not necessarily pays the price
of the product, like in case the goods are gifted or if they are purchased by the parents of a child.
5. The customer purchases the goods for the purpose of resale or to add value or for his/her personal use or on
behalf of another person. In contrast to Consumer, who purchases the goods for the purpose of consumption
only.
So from the above discussion, we can conclude that the person who is a customer is not necessarily a consumer
and vice versa. Now, it is a big question for many marketing executives to whom they focus on a customer or a
consumer?
Enterprises must focus on the two as they should take care of what is demanded of the product by the consumer
as well as they should advertise the product so well that it will grab the attention of the millions of customers
instantly because the buying decision is taken by the two together or by keeping in view of the other. So, the
companies should give equal importance to both.

MAGGI CONTROVERSY
The Nestle Maggi Noodles had a 70% share in India until when FSSAI has noted three major violations:
1. Presence of Lead detected in the product in excess of the maximum permissible levels of 2.5ppm.
2. Release of non-standardized food product in the market, viz. “Maggi Oats Masala Noodles with
Tastemaker” without risk assessment and grant of product approval.
3. Misleading labeling information on the package reading “No added MSG”.
Testing Controversies:
 MSG (Monosodium Glutamate): Testing found some MSG in Maggi noodles. The packet stated “No
added MSG”. However, MSG naturally occurs in hydrolyzed groundnut protein, onion powder and
wheat flour. Maggi offered to remove the words “No added MSG” from the package to overcome the
objection.

 LEAD: Out of the 13 samples tested by Delhi authorities, 10 of them had lead content exceeding this
limit. Testing outside of India resulted in reports that Maggi noodles are safe. The court mandated
testing to be done at three specific laboratories (Punjab, Hyderabad and Jaipur) where Maggi was
found
 safe. Some lead occurs naturally in plants and soil. Some lead is found in Indian species, although within
acceptable limits.

NATIONALSCENARIO OF NESTLE MAGGI NOODLES

Maggi controls nearly 70% of the instant noodles market in India, worth Rs 5000 crore, according to a report by
Times of India. It is followed by ITC Sunfeast Yippee, which has a market share of 18-20%. Hindustan
Unilever’s Knorr Soupy Noodles makes up for the balance share but after controversy following are the impacts
on Nestle Maggi Noodles:
• Fall in the sales – As states across the country banned the product, Maggi sales fell 60% across India since
the controversy began in the last week of May 2015, according to a Kotak Securities report.
• Net profit – Maggi contributed 30% of Nestle India’s Rs 1,185 crore worth profits in 2014-2015, as per the
media reports. Reeling under the Maggi ban, Nestle India had reported 60.1% decline in the net profit at Rs
124.20 crore for the third quarter ended September, 2015.
• Fall in share price – Its share price fell nearly 13.5% or by Rs 941 crore in the fifteen days to June 10, 2015.
Most consumers’ good companies have seen single-digit growth in the recent past. Keeping this in mind, the
controversy is only expected to add to Nestlé’s woes. Revenue growth may weaken in this financial year in the
aftermath of the controversy. The Nestle India stock trades at 33 times the company’s future Earnings per
Share (EPS), according to Kotak Institutional Equities report. This means, investors pay 33 times more than the
company’s expected profit in the financial year 2016 to purchase the stock.
• Panic in the market – As states across the country banned the product, many retailers took Maggi off the
shelves. Some states such as Punjab, Karnataka and Uttarakhand also ordered Nestle to stop production
until further orders.
• Consumer confidence slumps – Trust plays a major factor when a consumer buys a particular product. With
harmful chemicals like lead and MSG found in samples across the country, consumers may feel their health is
at stake. This has shaken consumer’s confidence. Its net sales declined 17% to Rs 8,123 crore and its profit
declined to 52.45% to Rs 563.27 crore. Nestle said sales in Asia and sub-Saharan Africa markets were
“overshadowed” by the issue in India.

Market research agency Nielsen’s data for January 2016 put Maggi’s market share at 42%, 35% points lower
than the share of the brand a year ago. However the company has gained significant market share since its re-
launch on November 9, to beat ITC’s Yippee noodles within two months to regain the top slot in January.
Implying there remains significant potential for the brand to regain its lost ground. Yippee had 33% market
share under review. At its peak, Maggi’s market share was 77-80%. A year ago, Yippee had 14%, according to
industry estimates. Therefore, the jump in a year works out to 19% points for Yippee noodles.
Nestle has successfully increased the reach of Maggi noodles when it was totally absent from retail shelves. By
the end of November, Maggi reached to some half a million outlets, by January its reach touched 1.4 million
retail shops across 27 states and other Union Territories. Prior to the ban, Maggi noodles used to be supplied to
some 3.8 million outlets.
The north, for the record, remains the strongest market for Maggi noodles, followed by the east and west.
Suresh Narayana, chairman and managing director of Nestle India, said the company was working on
introducing earlier variants as well as new variants of Maggi. While Nestle has been cutting its losses
sequentially sales growth has been sluggish, for the three months ended December 2015, the Indian subsidiary
reported a 44% decline in the net profit versus a 60% decline in bottom line in the September 2015 quarter. For
the December 2015 quarter, Nestle India’s net revenue stood at Rs 1,946 crore, higher than what it was in the
three months ended September 2015, when net revenue was Rs 1,736 crore but in line with June quarter
revenue of Rs 1,934 crore. The plan, according to Narayana, was to quickly restore Maggi sales to pre-ban,
before moving to other categories. Nestle India which took a hit of Rs 450 crore, including destroying over
30,000 tonnes of the instant noodles when it was banned, had stated it would be continue with the product’s
existing formula and would not change ingredients.
 CHAPTER-3
PRESENTATION, DATA ANALYSIS AND FINDINGS
Presentation of Data, Application ofStatistical Tool (Standard Deviation) and
Interpretation
The process of extracting, compiling and modeling raw data for the purpose of obtaining constructive
information that can be applied to formulate conclusions, predicting outcomes or supporting decisions in
business is called data analysis. Data from various sources is gathered review and then analyzed to form some
sort of finding or conclusion. Here is the result on the basis of respondent’s data.

1. Which brand of noodles people prefer to eat?

Nestle Maggi Noodles 44

Sunfeast Yippee Noodles 6
Patanjali Atta Noodles 0
Any other 0
Source: Field Survey

NOODLES BRAND PREFERENCE

90%
80%
70%
60%
50%
40%
30%
20%
10%
0% NESTLE MAGGISUNFEAST PATANJALIANY OTHER
NOODLESYIPPEE NOODLES ATTA NOODLES

Calculations for standard deviation

Numbers (x) x-x’ = x-12.5 (x-x’)2
44 31.5 992.25
6 -6.5 42.25
0 -12.5 156.25
0 -12.5 156.25
∑x = 50 ∑(x-x’)2 = 1347
The mean of the 4 given numbers = ∑x÷n = 50÷4 = 12.5
Therefore, S.D = √ (x-x’)2÷n = √1347÷4 =18.35 (approx.).

Interpretation:From the above chart it can be seen that out of 50 respondents 44 respondents which means
88% of consumers prefer Nestle Maggi Noodles and 6 respondents that is 12% prefer Sunfeast Yippee noodles.
After applying the statistical tool on the survey collected for most preferred noodles brand, the standard
deviation comes to 18.35 (approx.).
Thus, Nestle Maggi Noodles is liked by majority of the consumers than other brand of noodles.

2. Why people prefer Nestle Maggi Noodles?

Flavors 15
Taste 27
Price 2
Brand Loyalty 6
Source: Field Survey

REASON FOR PREFERENCE OF NESTLE MAGGI NOODLES

FLAVORSTASTEPRICE BRAND LOYALTY

4% 12%
30%

54%

Calculations of standard deviation

Numbers (x) x-x’ = x-12.5 (x-x’)2
15 2.5 6.25
27 14.5 210.25
 2 -10.5 110.25
6 -6.5 42.25
∑x = 50 ∑(x-x’)2 = 369

The mean of the 4 given numbers = ∑x÷n = 50÷4 = 12.5

Therefore, S.D = √ (x-x’)2÷n = √369÷4 = 9.60 (approx.).

Interpretation:From the above chart it can be seen that out of 50 respondents 27 respondents that is 54% of the
respondents prefer Nestle Maggi Noodles because of its taste followed by 30% for brand loyalty, 12% for
flavors and 4% for its price.
According to the survey done the standard deviation regarding preference of Nestle Maggi Noodles comes to
9.60 (approx.).
Thus, the taste of Nestle Maggi Noodles forced the consumers to prefer it over other brand of noodles.

3. What did people do after hearing the news about lead and MSG in Maggi?

Stop eating Maggi 16

Ignore the news and have faith in the brand 27
Shifted to other brands 7
Unaffected for not consuming Maggi 0
Source: Field Survey

REACTION OF THE CONSUMERS AFTER HEARING THE NEWS ABOUT LEAD AND MSG IN MAGGI

54%

32%

14%

0%

STOP EATING IGNORE THE NEWS SHIFTED TO OTHER UNAFFECTED FOR

MAGGI AND HAVE FAITH IN BRAND NOT CONSUMING MAGGI
THE BRAND
 Calculations of standard deviation
Numbers (x) x-x’ = x-12.5 (x-x’)2
16 3.5 12.25
27 14.5 210.25
7 -5.5 30.25
0 -12.5 156.25
∑x = 50 ∑(x-x’)2 = 409

The mean of the 4 given numbers = ∑x÷n = 50÷4 = 12.5

Therefore, S.D = √ (x-x’)2÷n = √409÷4 = 10.11 (approx.)

Interpretation: From the above chart it can be seen that at the time of the controversy of lead being found in
Maggi out of 50 respondents 54% ignore the news and have faith in the brand whereas 32% of them stop eating
Maggi and 14% of them shifted to other brand of noodles.
After applying the statistical tool it is found that the standard deviation regarding reaction of people on hearing
the news of lead and MSG found in Nestle Maggi Noodles comes to 10.11 (approx.).
Thus, Nestle Maggi Noodles have high brand preferences among the consumers which helped them not to loose
much of their customers even after the lead and MSG controversy as out of 50 respondents majority of them
ignore the controversy and kept faith in the brand.

4. What is the reason of banning Maggi?

Political conspiracy 4
Adulteration 9
Strategies of the Competitors 23
Other 14
Source: Field Survey

PROBABLE REASON FOR BAN OF NESTLE MAGGI NOODLES

 46%

18% 28%
8%

POLITICAL
CONSPIRACY ADULTERATION
STRATEGIES OF
COMPETITORS OTHER

Calculations for standard deviation

Numbers (x) x-x’ = x-12.5 (x-x’)2
4 -8.5 72.25
9 -3.5 12.25
23 10.5 110.25
14 1.5 2.25
∑x = 50 ∑(x-x’)2 = 197

The mean of the 4 given numbers = ∑x÷n = 50÷4 = 12.5

Therefore, S.D = √ (x-x’)2÷n = √197÷4 = 7.02 (approx.)

Interpretation:From the above chart it can be seen that out of 50 respondents 46% of them believed that the
probable reason for banning Nestle Maggi Noodles was due to strategies of the consumers but on the other hand
28% believed due to other reasons, 18% due to adulteration and 8% due to political conspiracy.
Applying standard deviation as the statistical tool on the survey done to find out reason for ban, it comes to 7.02
(approx.).
Thus, after the controversy of lead and MSG found in Maggi majority of the consumers are in the opinion that
the arising of the controversy and banning of Nestle Maggi Noodles were the strategies of the competitors.

5. Does the lead and MSG test in Maggi was successfully conducted?

Yes, it was successfully conducted 22

No, details were not disclosed 20
 Indifferent to Maggi 3
Strategies of the competitors 5
Source: Field Survey

CONDUCTION OF LEAD AND MSG TEST FOR MAGGI

YES, IT WAS SUCCESSFULLY CONDUCTED

NO, DETAILS WERE NOT PROPERLY DISCLOSED
STRATEGIES OF COMPETITORS
INDIFFERENT TO MAGGI

6%
10%
44%

40%

Calculations of standard deviation

Numbers (x) x-x’ = x-12.5 (x-x’)2
22 9.5 90.25
20 7.5 56.25
3 -9.5 90.25
5 -7.5 56.25
∑x = 50 ∑(x-x’)2 = 293

The mean of the 4 given numbers = ∑x÷n = 50÷4 = 12.5

Therefore, S.D = √ (x-x’)2÷n = √293÷4 = 8.56 (approx.).

Interpretation:From the above chart it can be seen out of 50 respondents 44% of them are in the opinion that
the test conducted for Maggi after the controversy of lead and MSG being found in it was conducted
successfully but 40% of them believed that proper disclosing about the test was not done, 10% were indifferent
to Maggi and 6% think that it was the strategies of the competitors.
Applying standard deviation as the statistical tool on the survey done to find the proper conduction of Nestle
Maggi Noodles comes to 8.56 (approx.).
Thus, majority of the consumers is in the opinion that the test of lead and MSG found in Maggi was
successfully conducted which concludes that consumers are gaining faith on the brand.

6. Which brand of noodles gaining the market position in the market when Nestle Maggi Noodles
was banned?

Sunfeast Yippee Noodles 33

Patanjali Atta Noodles 4
Ching’sDesi Chinese 8
Other 5
Source: Field Survey

BRAND OF NOODLES GAINING POSITION WHEN MAGGI WAS BANNED

66%

8% 16%
10%
SUNFEAST
YIPPEE NOODLES PATANJALI ATTA
NOODLES CHING'S DESI
CHINESE OTHER

Calculations of standard deviation

Numbers (x) x-x’ = x-12.5 (x-x’)2
33 20.5 420.25
4 -8.5 72.25
8 -4.5 20.25
5 -7.5 56.25
∑x = 50 ∑(x-x’)2 = 569
The mean of the 4 given numbers = ∑x÷n = 50÷4 = 12.5
Therefore, S.D = √ (x-x’)2÷n = √569÷4 = 11.93 (approx.)

Interpretation:From the above chart it can be seen that out of 50 respondents 66% of the market position was
gained by Sunfeast Yippee Noodles followed by 16% by Ching’sDesi Chinese, 10% by other brand of noodles
and 8% by Patanjali Atta Noodles.
Applying standard deviation as the statistical tool on the survey done to find out which noodle brand gaining the
position in the market when Maggi was banned, it comes to 11.93 (approx.).
Thus, after the banned of Nestle Maggi Noodles Sunfeast Yippee Noodles gained the maximum market position
compared to the other brand of noodles.

7. Will people still consume Maggi if any negative controversy arises again in future?

No, it is dangerous for health 4

Yes, have faith in the brand 22
Wait for the problem to be solved 22
Shift to the other brand 2
Source: Field Survey

STEPS TAKEN BY CONSUMERS IF SUCH CONTROVERSY ON MAGGI AGAIN ARISES

AVOID EATING MAGGI
HAVE FAITH IN THE BRAND
WAIT FOR THE PROBLEM TO BE SOLD SHIFT TO THE OTHER BRAND

4% 8%

44%
44%

Calculations of standard deviation

Numbers (x) x-x’ = x-12.5 (x-x’)2
4 -8.5 72.25
 22 9.5 90.25
22 9.5 90.25
2 -10.5 110.25
∑x = 50 ∑(x-x’)2 = 363

The mean of the 4 given numbers = ∑x÷n = 50÷4 = 12.5

Therefore, S.D = √ (x-x’)2÷n = √363÷4 = 9.53 (approx.).

Interpretation:From the above chart it can be seen that if the controversy of lead and MSG in Maggi again
arises then out of 50 respondents 44% of them will have faith in the brand and other 44% will wait for the
problem to be solved while 8% will avoid rather stop eating Maggi and 4% will shift to the other brand.
After applying the statistical tool it is found that the standard deviation regarding steps taken by consumers if
such controversy on Maggi again arises comes to 9.53 (approx.).
Thus, it can be concluded from the survey that consumers prefer Nestle Maggi Noodles the most as they will
either have faith in the brand or wait for the problem to be solved if such controversy against Maggi arises
again.

8. What factor caused Maggi to make a comeback?

Brand Loyalty 31
Good taste 10
Low price 3
Unavailability of good substitutes 6
Source: Field Survey

REASON FOR THE COMEBACK OF MAGGI AFTER THE CONTROVERSY

 62%

20%
6% 12%

Calculations of standard deviation

Numbers (x) x-x’ = x-12.5 (x-x’)2
31 18.5 342.25
10 -2.5 6.25
3 -9.5 90.25
6 -6.5 42.25
∑x = 50 ∑(x-x’)2 = 481

The mean of the 4 given numbers = ∑x÷n = 50÷4 = 12.5

Therefore, S.D = √ (x-x’)2÷n = √481÷4 = 10.97 (approx.)

Interpretation:From the above chart it can be seen that out of 50 respondents 62% of them believed that the
comeback of Nestle Maggi Noodles is due to brand loyalty, 20% are in the opinion that due to its good taste
Maggi make a comeback, 12% are in the opinion that there are unavailability of good substitutes and 6%
believed that due to its low price Maggi was able to make a comeback.
After applying the statistical tool on the survey collected for most preferred noodles brand, the standard
deviation comes to 10.97 (approx.).
Thus, it can be concluded that Maggi make a comeback due to its brand loyalty.

9. What is the current position of Nestle Maggi Noodles in the market after its comeback?

Increase 15
 Decrease 3
Reduced to a very low level 1
Remain the same 31
Source: Field Survey
CURRENT POSITION IN THE MARKET OF NESTLE MAGGI NOODLES AFTER ITS COMEBACK

62%

30%

6%
2%
INCREASED DECREASEDREDUCED TO A VERY REMAIN THE SAME
LOW LEVEL

Calculations of standard deviation

Numbers (x) x-x’ = x-12.5 (x-x’)2
15 2.5 6.25
3 -9.5 90.25
1 -11.5 132.25
31 18.5 342.25
∑x = 50 ∑(x-x’)2 = 571

The mean of the 4 given numbers = ∑x÷n = 50÷4 = 12.5

Therefore, S.D = √ (x-x’)2÷n = √571÷4 = 11.95 (approx.)

Interpretation:From the above chart it can be seen that out of 50 respondents 62% of them are in the opinion
that the market position of Nestle Maggi Noodles remain the same as it was before the controversy, 30%
believed the position is increased, 6% and 2% are in the opinion that the market position of Maggi decreased
and reduced to a very low level respectively.
According to the survey done the standard deviation on the current position of Nestle Maggi Noodles comes to
11.95 (approx.).
Thus, majority of the consumers are in the opinion that the market position of Nestle Maggi Noodles after the
comeback from the controversy of lead and MSG found in it remain the same.

10. What factor helped Nestle Maggi Noodles to rule the market for over 35 years and on?

Good taste 5
Easy to cook 13
Proper use of ingredients 1
All of the above 31
Source: Field Survey

FACTOR THAT HELPED MAGGI TO RULE THE MARKET FOR OVER 35 YEARS AND ON

GOOD TASTE EASY TO COOK

PROPER USE OF INGREDIENTSALL OF THE FACTORS

10%

26%

62%

2%

Calculations of standard deviation

Numbers (x) x-x’ = x-12.5 (x-x’)2
5 -7.5 56.25
13 0.5 0.25
1 -11.5 132.25
31 18.5 342.25
∑x = 50 ∑(x-x’)2 = 531

The mean of the 4 given numbers = ∑x÷n = 50÷4 = 12.5

Therefore, S.D = √ (x-x’)2÷n = √531÷4 = 11.52 (approx.).

Interpretation:From the above chart it can be seen that out of the 50 respondents 62% of them consider all the
factors such as good taste, easy to cook and proper use of ingredients helped Nestle Maggi Noodles to rule the
market for over 35 years and on whereas 26% are in the opinion that Maggi is ruling the market because it is
easy to cook, 10% think due to good taste and 2% think due to proper use of ingredients.
The standard deviation regarding ruling of Nestle Maggi Noodles for over 35 years and on comes to 11.52
(approx.).
Thus, all the factors such as good taste, easy to cook and proper use of ingredients helped the Nestle Maggi
Noodles to rule the market for over 35 years and on.

FINDINGS
From the analysis of the Maggi controversy the following inferences can be drawn:
 According to the survey 88% of people like Nestle Maggi Noodles while 12% of people like Sunfeast
Yippee Noodles which shows that Maggi is preferred more than other brand of noodles by majority
of the people.
 The taste of Nestle Maggi Noodles attracted the customers to it over other brands of noodles.
 Nestle Maggi Noodles have high brand preferences among the customers which helped them not to
loose much of its customers even after the controversy of lead and MSG being found in it as it is
concluded from the survey that majority of the customers ignore the controversy and have kept faith on
the brand.
 46% people think strategies of the competitors was the reason for ban of Maggi, 28% people
consider other reasons, 18% consider adulteration and 8% consider political conspiracy for the
reason of ban.
 According to the survey it can be draw that majority of the people are in the opinion that the test of lead
and MSG in Maggi was successfully conducted which shows that the consumers are gaining faith on the
brand.
 After the banned of Nestle Maggi Noodles Sunfeast Yippee Noodles gained the majority position in
the market, that is 66%, as compared to other brands of noodles.
 If any negative controversy again arises against the Nestle Maggi Noodles then it is found from the
survey that most of the consumers will either have faith in the brand or wait for the problem to be
solved instead of shifting to other brands.
 From the survey it can be concluded that the factor brand loyalty helped Maggi to make a comeback.
 Most of the consumers are in the opinion that the market position of Nestle Maggi Noodles after making
a comeback from the controversy of lead and MSG found in it remain the same as it was before the
controversy.
 The factors such as good taste, easy to cook and proper use of ingredients helped Nestle Maggi Noodles
to rule the market for over 35 years and on.
 CHAPTER-4
CONCLUSION AND RECOMMENDATIONS
CONCLUSION
It is concluded from the study that Maggi is the most preferred noodle brand among noodle consumers. 88%
people still trust Maggi beside all the adulteration and controversy face by the Maggi brand. The study showed
that beside the entire controversy faced by Maggi, consumer’s opinion about their loved product did not
changed much. They kept supporting and were eager for its comeback. In fact only 12% people witnessed
variation in their consumption while all this controversy had no impact over the consumption pattern on rest of
the population. Health is an issue for today’s generation. Proved is the presence of lead and MSG but even then
88% population considered Maggi as a healthy product. Regaining lost market is quite difficult but most of the
people believe Maggi can gain its market back easily. Maggi used flash sale method to resale its noodles via
Snapdeal. The concept hit among 70% of the total population. Whatever was the controversy or whatever were
the facts, consumers of Maggi noodles had and have faith in Maggi and stick to it no matter what.
It is also concluded that there’s no denying that food safety regulations leave a lot to be desired. Despite
establishment of the Food Safety and Standards Authority of India in 2006 and subsequent promulgation of the
Food Safety and Standards Regulations, 2011, implementation of rules is haphazard and erratic. Food safety
demands adequate oversight and inspection at each step of the food production and supply chain. However,
such a principle is rarely followed in India.

RECOMMENDATIONS
Maggi has lost the trust of many customers and rebuilding that trust will be a challenge for Nestle. There is
an immense window of opportunity for Maggi’s rival brands. One can derive that the crisis will most
certainly have an impact on Nestlé’s revenue. Consumers felt cheated and it probably would leave the scars
for a long time to come.
Some of the recommendations on the basis of the above findings and conclusions that the company has taken
into consideration are as follows:
 Retailers should be encouraged to ask questions and raise doubts which will help to generate a bank of
ideas to help the company deal with the crisis.
 India needs to embrace structural changes to ensure food safety for future generations. The main concern
stems from the Food Safety Standards Authority of India (FSSAI), created under the Food Safety and
Standards Act, 2006. This has been enacted in accordance with international codex guidelines having a
lot of provisions in the Act that require revamping but what we are seeing is a patchwork
implementation of both the old PFA (Prevention of Food Adulteration Act) guidelines as well as the new
FSSAI laws.
 The government should completely overhaul the Food Safety and Standards Authority of India
(FSSAI) and state authorities.
 The re-launch should change the product packaging to give it a new start. The company should also
change its labeling to ensure it does not violate food safety norms.
 Routine check for packaged food items should be start to check for any contravention as per Food
Safety and Standards Act.
 The southern region is the weakest due to differences in eating habits; company should work on
strengthening its presence in different markets as it looks to improve sales.
 Prices should be kept normal without many changes. In order to keep with the changing economic
times Maggi has reduced the quantity, instead of the prices. To cater to the middle and low income
class customers, Maggi should be available in different sizes of packets at various prices so that
customer can buy as per budget.
 Nestle India company has disclosed having spent Rs. 445 crore on Advertising and sales promotion last
year while the expenses towards quality testing was less than 5% of such amounts that itself explains
everything, the company needs to be more forthcoming in communicating actively and transparently to
the public.
 Uniform and clear guidelines on how to go about monitoring the industry with a clear timeframe
such that such random, arbitrary testing is done away with. This will ensure transparency and also
simplify the FSSAI guidelines.
It will take time to get back the market share which presently lies distributed with the other
competitors of Maggi but a faith and strong planning is the key to success.
 CHAPTER-5
BIBLIOGRAPHY

Websites:
https://en.m.wikipedia.org>wiki>Maggi - Date: 21.10.2018; Time: 12:06 p.m.
https://m.economictimes.com - Date: 26.10.2018; Time: 3:10 p.m.
https://keydifferences.com - Date: 1.12.2018; Time: 02:04 p.m.
https://www.scribd.com - Date: 2.11.2018; Time: 11:04 p.m.
www.academia.edu - Date: 7.01.2019; Time: 07:27 p.m.
Newspapers:
The Telegraph
The Times of India
ANNEXURE
QUESTIONNAIRE
Dear Sir/Madam
You are requested to fill this questionnaire so that I can conduct my study on Nestle Maggi Noodles controversy
and its impact.

NAME: AGE:
GENDER: PROFESSION:

1. Which brand of noodle you prefer to eat?

a. Nestle Maggi Noodles

b. Sunfeast Yippee Noodles
c. Patanjali Atta Noodles
d. Any Other

2. If you like Maggi noodles, which type of it do you like?

a. Vegetable Atta Noodle

b. Chicken Noodle
c. 2-minutes Noodle
d. None

3. What comes first in your mind when you hear the word “Maggi”?

a. Noodles

b. Fast Food

c. Snacks

d. None of these

4. How do you perceive Maggi products?

a. Good for health

b. Junk Food Tasty

c. Ready to eat

d. Fun eating

5. Why do you prefer Nestle Maggi Noodles?

a. Flavors

b. Taste

c. Price

d. Brand Loyalty

6. How much will you rate Nestle Maggi Noodles on taste?

a. Delicious

b. Tasty

c. Not so tasty

d. Sour

7. How do you feel about the price of the Nestle products?

a. Very high

b. High

c. Reasonable

d. Low
8. Rate your satisfaction level on Nestle products?

a. Excellent

b. Good

c. Satisfied

d. Not Satisfied

9. What did you do after hearing the news about lead and MSG in Maggi?

a. Stop eating Maggi

b. Ignore the news and have faith in the brand

c. Shifted to others brand

d. Unaffected as you do not consume Maggi

10. What do you think was the reason of ban?

a. Political conspiracy

b. Adulteration

c. Strategies of competitors

d. Other

11. When Maggi was ban did you still consume noodles? If yes, which brand you preferring at that time?

a. Sunfeast Yippee Noodles

b. Patanjali Atta Noodles

c. Any other
d. None

12. What was the frequency of the consumption of Maggi in your routine prior to its ban?

a. Once a day

b. Once a week

c. Occasionally

d. Other

13. Do you think the lead and MSG test for Maggi was successfully conducted?

a. Yes, it was successfully conducted

b. No, details were not properly disclosed

c. I am indifferent to Maggi

d. Strategies of the competitors

14. What factor do you think caused Maggi to make a comeback?

a. Brand loyalty

b. Good taste

c. Low price

d. Unavailability of good substitutes

15. How much will you rate Maggi Noodles on health safety after its comeback?
a. Safe

b. Does not affect much

c. Affects little

d. Unsafe

16. Will you still consume Maggi if such news is repeated in future?

a. No, it is dangerous for health

b. Yes, I have faith in the brand

c. Wait for the problem to be solved

d. Shift to the other brand

17. How much your purchasing decision for other products endorsed by Nestle Company gets affected when
Nestle Maggi Noodles was banned?

a. Huge

b. Little

c. Unaffected

d. None of the above

18. Which brand of noodle do you think was gaining the position in the market when Nestle Maggi
Noodles was banned?

a. Sunfeast Yippee Noodles

b. Patanjali Atta Noodles

c. Ching’sDesi Chinese
d. Other

19. What do you think is the current position of Nestle Maggi Noodles in the market?

a. Decrease

b. Increase

c. Remain the same

d. Reduced to a very low level

20. Which factor do you think helped Maggi to rule the market for over 35 years and on?

a. Good taste

b. Easy to cook

c. Proper use of ingredients

d. All of the above