Analytical study on Consumer behavior towards “Maggi Instant noodle” in Mumbai –A post ban Scenario Mr Rahul .M.Mhabde ! Mrs Ra"eshri Soni# 1
2
Senior Academic Head, BBA, Podar World College, Maharashtra, India Assistant Professor, Department Of Accontnac!, "ha#r college of science $ commerce, Maharashtra, India ABSTRACT ABSTRACT
"his research paper focses on perception of consmers post %an to&ards Maggi instant noodles' (esearcher has ta#en )* sample si+e of age grop of 1) and a%oe' (esearch is condcted in cit! of Mm%ai sing conenience sampling method' "he std! deals &ith consmer %ehaior to&ards Maggi in post %an scenario is interlin#ed &ith &ellness and health indstr! as %an &as de to ha+ardos content in the Maggi Maggi is an international Brand of instant noodle o&ned %! -estle since 1./0' Maggi instant noodle penetrate in India in 1.'the! instantl! captre mar#et &ith an entirel! entirel! ne& food categor! called as instant noodle' "he target consmer &as children and mothers' &ith its 2) !ears, it has reached .*3 of instant noodle mar#et' Maggi is the great reene reene contri%tor for -estle' -estle' Sddenl! there is is a drop in sale de to negatie p%licit! p%licit! de all &rong reason reason li#e presence of ha+ardos content &hich has sha#en the trst of Consmer' (esearcher has Highlighted the comparatie anal!sis of maggi consmption in pre and post %an scenario
Maggi, instant noodles, consmer %ehaior Keyword – Maggi,
1. Introduction: In the world o$ %igitali&ation! news spread at very $ast speed And i$ the news are un$avorable! it impossible to stop. 'rands! there$ore! are more a$$ected and sensitive issue! than in any other day and age. Change in e(ternal environment! government policy! consumer pre$erences! media and cut throat competing by $irms ma)e it all too easy to $all $rom top. And the losses are in the terms o$ reduction in revenue! loss o$ clients or suppliers and loss o$ mar)et share. *he victim o$ such mess is Maggi! the instant noodles brand $rom $ood and beverage company +estle. ,ne o$ India-s most most trusted brands and perhaps the country-s most $avored com$ort $ood! it has captured the mar)et in terms o$ brand value and sales ever since the recent controversy regarding ha&ardous ingredients that are not sa$e $or health and should not consume. *he issue arose due to the ttar /radesh 0ood Sa$ety and %rug Administration ordered the recall o$ a batch o$ #11!111 Maggi noodle pac)s and $ound that Maggi is not healthy to consume due to which many states decided to randomly test samples and banning sales in the mar)et as a result retailer removed Maggi $rom their shel$. 1.1 Literat Literature ure rev review: iew: Dr.Mustiary Begum(2016 !1" paper has highlighted issues related to Maggi and how consumer have changed their perception regarding Maggi a$ter post ban. Researchers have ta)en 23 respondents and have done analysis with the help o$ simple analytical tool li)e graph and tabular $orm. *he study shows those consumers are ready to buy Maggi a$ter it relaunch in the mar)et provided that they include healthy ingredient. 4owever researcher has not mention about the pro$ile o$ the respondent li)e gender! age! and pre$erence which has greater impact on decision ma)ing secondly the area o$ study is not covered by researcher which contribute
www.i"ariie.com
towards decision ma)ing o$ noodle the test and pre$erence di$$er in di$$erent state hence the present study has tried to cover ma(imum possible $actor which a$$ect behavior o$ consumer. #$%BI#&% B''#$% (se)t 2016 !2"./aper has highlighted impact o$ Maggi noodle on the psyche o$ the Indian consumers. *he sampling techni5ue used is Strati$ication $ollowed by SRS6oR. *he researcher has divided entire population o$ India into strata! according to the target audience groups o$ Maggi +oodles. *hen the stratum that holds people $alling in the age group o$ 7 – #8 years $rom middle class $amilies was selected. A$ter this the sampling method o$ SRS6oR was applied in the stratum! where the survey 5uestionnaire was randomly sent out the consumers scattered all over India. *he conclusion is based on the data collected immediately a$ter 9 months o$ Maggi relaunch. According to researcher :9; o$ the population were ready to accept Maggi a$ter its comebac) .4owever! the study has ta)en sample si&e restricted to age group o$ 7<#8 years. *he decision ta)en is based on this selected age group which may not give proper outcome as children below 7 years consumed magi at large. Secondly the period selected i.e. 9 month was too early to give any decision on relaunch o$ Maggi. *hus the present study has tried to cover all age group and 5uiet long period so that decision derived has impact to some e(tent %yus*i +ain (2016 !,"the author has ta)en comparative study o$ Maggi and /atan"ali aata noodle. *he said paper has highlighted growth o$ patana"ali noodle due to Maggi ban. *he sample si&e was 11 respondents and restricted to %elhi region. Research shows that consumer has accepted Maggi whole heartedly a$ter its ban and also stated that /atan"ali is most $avored due to its price. Dr. -ames* #ardar(+uy 201/ !".the study is based on comparative analysis o$ Maggi at international mar)et and Indian mar)et. Study is based on secondary data which highlighted the pre$erences o$ Maggi at international mar)et as compare to Indian mar)et. Dr.'M%&$I.D (+an 2016 !/"*he said study has ta)en overview o$ the status o$ Maggi be$ore and a$ter ban in the mar)et. /aper has highlighted scenario o$ Maggi in general .however the speci$ic period and the pre$erences o$ consumer is out o$ the scope o$ this study. e*a arg(+uy 201/ !6" Author has ta)en secondary source $or the said study. Research paper e(amine the root cause o$ the Maggi row. 4owever the paper is based on secondary data hence consumer pre$erences are out o$ the scope o$ the study. Consumer behavior is the main criteria to study the impact o$ Maggi in India a$ter its ban.
2. -esearc* Met*odoogy: 2.1 -esearc* )roem: According to article stated in news paper “Regaining customer con$idence isn-t easy once consumers have a negative perception o$ a brand”! Is true $or Maggi brand. Crisis management re5uires more e$$orts to regain its value. *he study analyses how consumer behavior changed towards Maggi in terms o$ Attitudes! pre$erences! intentions! and decisions . 2.2 '3ective o4 #tudy . *o study consumer behavior irrespective o$ age! gender and category towards Maggi +oodles. #. *o study the impact o$ ban on consumer towards buying decision o$ Maggi. 3. *o study the growth o$ substitute due to ban on Maggi. 8. *o analyse the opinion o$ consumer regarding Maggi a$ter it hit the mar)et again. #.3 5rimary data: #am)e #ie= 91 respondents o$ all age group and gender #am)ing &ec*ni7ue= Convenience Sampling Instruments used = Structured >uestionnaire -esearc* Met*odoogy: Survey method.
#econdary data:
Secondary%ata will be collected $rom "ournals! reports on Maggi product! boo)s! internet and other relevant in$ormation $or the said study.
www.i"ariie.com
#
#.8 #igni4icance o4 t*e study = In the past! Maggi was popular $ood amongst all age group o$ consumer. *he sales o$ Maggi +oodles had sharply increased over the years? however the ban on maggi has greater impact on consumer as well as company and other sta)e holders. *he study e(amines the change in sales and consumption pattern over the years! the study is help$ul to other small scale company and $ood to analy&e and to understand the issue related to such a big company. *he study is guide $or $urther research in the $ield o$ 0MC@. It will also serve as guide to overcome with the problem o$ brand image and how rebuild brand image
,. %naysis and Inter)retation '3ective: &o study consumer e*avior irres)ective o4 age8 gender towards Maggi
Consumer behavior consist o$ those $actor which a$$ect test! pre$erences! li)es and disli)es and decision o$ consumption .Age and gender plays important role $or consumption pattern. *est and pre$erences di$$er as per the age. the main purpose is to see the consumption pattern o$ consumer at di$$erent age category and with gender >. 0ollowing table indicate Age and @ender o$ the Respondents
&ae 1:Age o$ respondents B @ender Cross tabulation
ender Mae
%ge o4 res)ondents
&ota
9emae
1/2/
1,
12
2/
2/,/
;
<
1=
,//
6
2
<
2<
22
/0
&ota
%naysis: *he above table indicates the demographic $actor o$ respondent. out o$ 91 respondent #9 respondent are under the age brac)et o$ 9<#9 years o$ age !o$ these respondent 3 are male and # are $emale.: respondents are in the age brac)et o$ #9<39 age group o$ which 2 are male and 7 are $emale. It re$lect that only 7 respondent are in the age group o$ 39<89 o$ which are male and # are $emale. Inter)retation= *o conclude ma"ority o$ the respondent are in the age group o$ 9<#9 brac)et and male respondent are more as compare to $emale respondent. >.2 give your agreement 4or instant noode &ae 2: /re$erence $or Instant noodle
Dalid
9re7uency
5ercent
/re$erred to eat
3:
:8.1
+ot pre$erred to eat
2
7.1
%on-t Enow
8
7.1
www.i"ariie.com
3
*otal
91
11.1
%naysis= *he above table show the pre$erences o$ consumer regarding instant noodles. when as)ed them about their pre$erences $or instant noodles 3: respondent out o$ 91 respondent pre$er to eat as compare to 8 respondent who are not able to answer about the same. however 2 respondent i.e 7; o$ the total respondent not pre$erred to eat instant noodles. Inter)retation: o$ the 91 respondent ma"ority o$ respondent pre$erred to eat noodle i.e :8; o$ the total population. 0ollowing the graphical representation o$ the same. ?*art 1: Agreement $or instant noodle
>, @*ic* o4 t*e rand o4 instant noode consumed y you %naysis: 'elow table indicate the usage o$ brand by the respondent $or consumption o$ maggi.it has been observed $rom the table that out o$ 91 respondent 38 respondent i.e 7; o$ the total population pre$erred maggi over other brands.7 respondent i.e ; o$ the total population ta)es patan"ali brand and only 3 respondent i.e ; ta)es sun$east. Inter)retation= ma"ority o$ population buy maggi instant noodle over any other brand which shoes the popularity o$ maggi in the mar)et. $ollowing is the graphical representation o$ the same. &ae ,= 'rand /re$erences
Dalid
0re5uency
/ercent
Magii
38
7.1
/atan"ali
7
.1
Fuppie
9
1.1
Sun$east
3
.1
*otal
91
11.1
www.i"ariie.com
'3ective: &o study t*e im)act o4 an on consumer towards uying decision o4 maggi &*is o3ective *ig*ig*ts *ow consumer e*aves 4or uying maggi due to its an.
8
>. *ow o4ten did you &ae : Consumption pattern 'e$ore 'an
Dalid
consume
t*e
)roduct
0re5uency
/ercent
Gveryday
#.1
*hrice a wee)
##.1
*wice a wee)
9
31.1
,nce a wee)
3
#.1
,nce a month
2
7.1
,nce a Si( month
#.1
*otal
91
11.1
e4ore
t*e
anA
%naysis= *he above table shows the usage o$ maggi be$ore its ban. it shows the popularity o$ maggi be$ore its ban. the $re5uency o$ consuming maggi is more $or the respondent who consume thrice in a wee) i.e 9 respondent .only respondent consuming maggi on a daily basis however 3 respondent i.e #; o$ the total population consume once a wee). and 7; o$ total population consumed once a month. Inter)retation = it is observed that ma(imum respondent pre$erred to consume 3 times a wee) which shows that $re5uency o$ consumption is higher.. >./ Do ou Beieve Maggi oodes ?ontained Cn*eat*y Leves o4 Lead and M# u) unti 201/A &ae /: Agreement $or 4a&ardous content
0re5uency
/ercent
Fes
8
#7.1
+o
7
3.1
Maybe
7
3.1
*otal
91
11.1
Dalid
%naysis= *he table indicates awareness o$ harm$ul ingredient in maggi be$ore its ban.it shows how consumer conscious and alert about the ingredient in maggi. 6hen as)ed about the presence o$ unhealthy lead and MS@ in maggi 8 respondent i.e #7; o$ the total population )nows about it. 4owever e5ual number o$ members are on the other side o$ the agreement. Inter)retation: it is observed that ma"ority o$ respondent are not aware about o$ presence o$ unhealthy lead and the same number o$ respondent i.e 3; are not sure about the same. >.6 %re you consuming maggi a4ter its reaunc*A %naysis :'elow table shows willingness to consume maggi a$ter its relaunch. it shows how the consumer react and pre$er maggi post ban situation. when as)ed about their willingness to consume a$ter its relaunch!37 respondent i.e :; o$ the total population ready to use and # respondent are not willing to buy a$ter relaunch.
www.i"ariie.com
9
Inter)retation: it has been observed that ma"ority o$ population still buy maggi which conclude that respondent decision ma)ing is not much a$$ected due to ban. &ae 6= /re$erence o$ maggi a$ter its relaunch
Dalid
0re5uency
/ercent
Fes
37
:.1
+o
#
#8.1
*otal
91
11.1
>.=I4 yes $ow o4ten did you consume t*e )roduct a4ter its comeacA &ae =: Consumption pattern a$ter relaunch
0re5uency
/ercent
*hrice a wee)
#
8.1
*wice a wee)
8
7.1
,nce awee)
##.1
,nce A M,+*4
#9
91.1
+ever
7
.1
*otal
91
11.1
Dalid
%naysis: *he above table indicates consumption pattern o$ respondent a$ter its relaunch.it shows how ban has a$$ected their buying decision o$ maggi. #9 respondents consume maggi once a month . respondents consume once a wee). ,nly # respondent i.e 8; o$ the population consume thrice a wee). Inter)retation: comparative analysis shows that $re5uency to consume has reduced a$ter its relaunch. 'e$ore ban ma"ority population were consummating maggi thrice a wee). i.e 31; o$ the total population were o$ this category however data shows that it has gone down to 8; a$ter its relaunch..it means ban has a$$ected consumption $re5uency o$ maggi.
'3ective: &o study t*e growt* o4 sustitute due to an on Maggi >.< w*ic* instant noode )roduct were you consuming during t*e an on Maggi oodesA &ae <: /roducts consumed during ban on Magii
www.i"ariie.com
Dalid
0re5uency
/ercent
Sun$east
#
#8.1
Fuppie
#
#8.1
/atan"ali
2
37.1
,ther
:
8.1
*otal
91
11.1
%naysis: *he above table indicate substitute that consumer pre$erred during ban on maggi. %ata re$lects strong competitor who satis$ied consumer when maggi was out o$ the mar)et. 6hen as)ed about other brand ma"ority o$ consumer give their choice $or patan"ali noodles i.e 2 respondent out o$ 91. It means 7; o$ the total population consumed patan"ali during ban phase. sun$east and yuppie has same number o$ respondent . Inter)retation= it is conclude that a$ter maggi the second pre$erence was given to patan"ali noodles during ban period it shows that patan"ali is tough competitor o$ maggi >.; Do you sti )re4er t*at )roduct over Maggi oodesA %naysis: 'elow table shows pre$erences o$ other brand over maggi a$ter its relaunch.#7 respondent ready to consumed maggi a$ter its relaunch.i.e 9; o$ the total population were in $avour o$ maggi. however when as)ed about the pre$erence o$ other brand over maggi 8 respondent i.e #7; o$ the total population stic) to other brand even a$ter come bac) o$ maggi. Inter)retation= it shows that maggi is still choice o$ the consumer as ma(imum consumer consumed maggi a$ter it is bac) in mar)et.
&ae ;= /re$erence o$ other noodles over maggi post launch
0re5uency
/ercent
Fes
8
#7.1
+o
#7
9.1
May 'e
7
.1
*otal
91
11.1
Dalid
'3ective: &o anaysis t*e o)inion o4 consumer regarding Maggi a4ter it *it t*e maret again. &*is o3ective is asicay deas wit* t*e o)inion o4 consumer a4ter maggi reaunc*.it aso deas wit* t*e 7uaity o4 maggi a4ter its ac in t*e maret. >.10 .give you o)inion regarding test o4 maggi noodes a4ter it *it t*e maret. &ae 10: ,pinion about taste o$ Maggi post launch
www.i"ariie.com
:
Dalid
0re5uency
/ercent
Changed $rom good to bad
#.1
Same as be$ore
88
77.1
*otal
91
11.1
%naysis: *he above table shows the opinion o$ consumer towards maggi a$ter it hit the mar)et again. it shows the comparative opinion o$ consumer be$ore and a$ter ban o$ maggi.88 respondent i.e 77; o$ the total population said that the test o$ maggi is same as be$ore there is not much change in test and 5uantity o$ maggi. 4owever only #; o$ the total population said that taste has changed and become bad as compare to pre ban maggi test. Inter)retation= ma"ority o$ population are under the belie$ said that maggi test is same as be$ore. they believe t at ban has not change the test and con$idence o$ consumer ?om)arative %naysis o4 maggi consum)tion during )re and )ost an 'elow data indicate comparative analysis o$ maggi consumption in pre and post ban. It has been observed that respondent with the age group o$ 9<#9 years ma"ority in maggi consumption in pre as well as post ban period .i.e #9 respondent appro( 91; o$ the total population are under this age brac)et and are consuming more maggi as compare to others. consumption under this age group has gone down due to ban.7 respondent were consuming maggi thrice a wee) be$ore ban period which has gone down to # respondent a$ter ban period. the same trend is $ollows $or di$$erent age brac)et respondent $or consumption in three time a wee). %ata also indicate that the number o$ respondent increases in consumption o$ maggi in once a month during post ban period as compare to pre ban period. earlier only 2 respondent were consuming maggi once a month it means that the $re5uency o$ duration to consume maggi has increases in post ban period It shows that more people are avoiding maggi on $re5uent basis they ta)e once in a month.
&ae 11= Age o$ respondents B Consumption be$ore 'an Cross tabulation
Count Consumption 'e$ore 'an
*otal
Gveryday *hrice a wee) *wice a wee)
,nce a wee) ,nce a month +ever
9<#9
9
7
8
#9
Age o$ #9<39 respondents
1
8
9
8
8
1
:
39<89
1
#
#
3
1
7
9
3
2
91
*otal
&ae 12: Age o$ respondents B Consumption A$ter Relaunch Cross tabulation
Consumption A$ter Relaunch
www.i"ariie.com
*otal
7
Age o$ respndents
*otal
*hrice a wee) *wice a wee) ,nce a wee) ,nce A M,+*4
+ever
9<#9
#
9
8
3
#9
#9<39
1
3
1
3
:
39<89
3
#
7
#
8
#9
7
91
. ?'?LC#I'# *he above study has highlighted some o$ the $inding which was analy&ed $rom the available data . Maggi consumption is more amongst the respondent with the age group o$ 9<#9 years as compare to other age group. #. Maggi is consider as most pre$erred instant noodle brand as compare to other brand o$ instant noodles 3. *he trend o$ maggi consumption is not much a$$ected by ban. 8. Maggi has maintained trust and con$idence amongst the consumer even a$ter post ban period due to its 5uality and test. 9. At macro level ban has not a$$ected maggi $or consumption..consumer still buy maggi as instant noodle . At micro level the $re5uency o$ consumption has gone down due to ban. Consumer are not $re5uently consume maggi same as be$ore they were consuming. *he choice o$ maggi become once a month in post ban period is more as compare to pre ban which clearly shows that people-s consumption $re5uency has gone down.
/. -E9E-E?E# H 'egum! M. J#1. Consumers- /erception *owards Maggi Instant +oodles A$ter Its Relaunch. Indian 4ornal of research! 9J#! pp.#<#3. H# ',,S4A+! S. J#1. Maggi muddle case and its impact on the psyche o$ the Indian consumers J7 to #8 years. International 5ornal of (esearch in Applied, -atral and Social Sciences! 8J2! p.. H3 Kain! A. J#1. A study on Maggi ban and simultaneous launch o$ /atan"ali Atta noodles. "MIM" International 5ornal ! JSpecial Issue< #1. H8 Sardar! 8. J#19. Maggi Stews in Lead and MS@ /ot= Controversy over India-s $avourite instant +oodles Author. Case Stdies 5ornal ! Honline 8J:! p.. Available at= http=www.casestudies"ournal.com HAccessed %ec. #1. H9 %! @omathi. J#1. An ,verview o$ Maggi +oodles on and o$$ *he Shelves in India. Indian 4ornal of research'! 9J. H @arg! +. J#19. Impact o$ Maggi Row in India. i678plore International (esearch 5ornal Consortim! Honline 8J:! p.. Available at= http=www.ir"c"ournals.org HAccessed %ec. #1.
www.i"ariie.com
2
