Indian Consumer Behavior: The Case Study of Maggi Noodles and Nestlé India

Abstract

“You are what you eat” is a common notion that characterizes the cultures worldwide. Starting from this phrase, we are going to describe the Indian Consumer Behavior with a particular interest in the case of Maggi Noodles, one of the most loved brand in India, by Nestlé. The first chapter explains the main characteristics of the emerging Indian market with the aim to understand why it is considered one of the most complex in the world. A relevant finding discovered is the following: There is no single India, by considering and contrasting both the consumers’ and market’s perspective. It is given a general perspective of Indian Consumer Behavior by following the concept that “Consumer India offers as much pain as gain” (Bijapurkar, 2008). Moreover, the main Indian values are mentioned with some examples: family orientation, saving orientation, child centrality and food habits. In particular, an entire paragraph is dedicated to better understanding the diverse food and eating habits in the Indian culture. Another interesting aspect discussed is the consumer health from an Indian perspective. In the ancient times, Indian believed that “Everything that exists in the universe, the macrocosm, exists in the microcosm of the human body”. However, due to the changing lifestyle, they have replaced the fresh and healthy food made by their labour intensive preparation, with the ready to eat food which is considered more convenient and tasty. Going ahead with the business case, 2015 has been an unexpected year for Nestlé India. Maggi Noodles, which is a product that is in the Indian hearts, was recalled from the market. FSSAI took a sample from a retail shop in UP (Uttar Pradesh) and after some test analysis, it has been discovered that the product had inside MSG (Monosodium Glutamate) and quantity of lead, both beyond the permissible limits. Thanks to the interview with the Marketing Manager of Nestlé India, it has been possible to see the way in which the Company has worked on the Maggi brand over the years. Moreover, it is dedicated a section for getting why the advertisement in India targets the children and why the micro package is common in the Indian consumption pattern. Finally, through the questionnaires and the interviews taken in loco at IIM Lucknow (India), we have analyzed the behavior of the consumers during and after the controversy by segmenting the market into students and workers. How much important is eating healthy food in their daily life? Did they switch to another brand? Are they still eating Maggi? Through a quantitative and a qualitative analysis, we are going to report the results of this study that have been statistically tested by using the t-test tool.