MAN130 Management Research Methods Assignment Sample 2023
Introduction
Present proposal will be focused on the analysis of Nestle and the methods of strong management that helped the company to retain its position in the huge Indian domestic market. This proposal will include discussions regarding Nestlé’s most successful venture, Maggi, in the Indian market and its downfall due to inappropriate information. This study will include a data analysis based on the secondary sources of data collected from newspapers and media interviews.
Background
Nestle is among the largest food companies in the industry with a business of more than Rs.126 million in the Indian market in 2019. Nestle celebrated their 150th Anniversary in the year 2016. Nestle is among the largest names in the domestic market and Maggi is by far the most successful product of the brand. Maggi accounts for 90% of Nestlé’s market share in India and is branded as the ‘2 Minute Noodles’ in the Indian market (Advisorymandi, 2019). Maggi was introduced in India back in 1982 and became the largest brand for Nestle in 2001. Shortly after Maggi completed its journey of 25 years in 2009; it was hit by a large wave of discomforts in 2015 when FSSAI imposed a nationwide ban on Maggi.
Problem Statement
A major problem that has been identified in this case is that FSSAI banned Maggi due to the presence of Monosodium Glutamate in a high amount. In this respect, the present proposal will be highlighting the revamping strategy of Nestle in India. The amount was more than nearly 1000 times what Nestle had claimed before. This has resulted in dropping of shares from 90% to 0% (Capital Market, 2019).
Rationale
The major issue is that Nestle had lost its market share in the Indian market and recovery time was estimated to be 3 years. It had lost more than 10 million in 3 months. The issue arises because of false marketing and manipulation of information. Nestle resulted in cheating its customers by offering information that was incorrect as the amount of MSG present in Maggi was harmful (Nestle, 2020). However, being a respectful company, Nestle did not counter the court’s decision and re-launched all the products with significantly less amount of lead and MSG which resulted in a lifting of ban from the Bombay High Court on 13th August 2015. Nestle was even certified by the National Accreditation Board for Testing and Calibration Laboratories (NABL) and was allowed to continue its business in India from 2016 (Nestle, 2020). This research will shed light on the revamping strategy of Nestle Maggi in India.
Aim and Objectives
Aim
This study aims to analyse management strategies of Nestle Maggi that was followed during product crisis in India and brand rebuilding perspectives are also elaborated.
Objectives
All the objectives for monitoring internal and external management strategy analysis of Nestle Maggi are enlisted below with proper justifications.
- To provide background of Nestle as FMCG company by evaluating its business performance in India and across the globe
- To understand crisis situation of Nestle by measuring benefits over its potential competitors in market
- To find out the major consequences for Nestle during product crisis in India
- To determine product rebuilding capability of Nestle by discussing different new strategies of this organisation
Literature Review
Dependent Variable: Strong Brand Management
Strong brand management is one of the primaries focuses on any brand operating in a major domestic market like India. India has been identified as among the topmost markets in the world with optimum quality resources and customers that can decide a brand’s fate. According to the reports by Standard Trade (2019), the consumer profile of India is impressive with more than 1.3 million people in the market and a literacy rate of more than 74% product acceptance is easier for strong brands. The Indian market can grow to huge sizes as it has been found out that consumer spending on food items in India increases by 12% every year (Standard Trade, 2019).
Nestle is among the major brands that were caught with a faulty product which resulted in extensive hate from the Indian consumers. The brand was critically downsized; however, effective management of Nestle had resulted in continuous improvement. According to the views of Atwal and Williams (2017), this helped Nestle to bring back Maggi in the Indian market with new consumption figures resulting in customer acceptance. Nestle had extensively focused on the acceptance rate of the native industry as the food and drinks industry in India accounts for 30% of the total business. Nestle revamped its Maggi and saw a 57% market share within 1 year of its reappearance in India.
Independent Variable: Brand positioning
Brand positioning is one of the most crucial aspects in the case of Nestle as the brand is more than 150 years old and is present in more than 20 different countries in the world. As per the views of Leijerholt et al. (2019), brand positioning is related to the techniques and methods applied by a brand with the help of its products in a domestic market. The techniques are required to be appropriate based on the type of culture and consumers of a market.
In other words, brand positioning as described by Burmann (2017), ‘is defined as the conceptual place in which a brand wants to target the customer’s mind’. This is the classic case of Nestle when it introduced Maggi in the Indian market by promoting it with an instant noodles tag. This was largely accepted by the consumers and was even showered with positive reviews as well. Brand positioning strategy will result in maximizing the customer relevancy and distinctiveness in the competitive nature of the market. This resulted indirectly affecting the brand value and making the brand even popular among other players.
Independent Variable: Brand promotion
Brand promotions have been largely identified as one of the most crucial and vulnerable aspects of a brand. Promotion of a particular product can result in the extensive outbreak in the domestic market of India. As per the views of Orji et al. (2020), ‘it is a way to inform, remind and persuade convincingly to influence the customers in driving their decision towards purchasing the product or service offered’. Promotion of a brand largely depends on the actions done by a company; it is even believed that a larger brand which operates in several markets around the world is more likely to create good promotional techniques. Nestle is among such brands and is a leader in the food and drinks industry of the world.
Introduction of Nestle in India was cemented after the initiation of Maggi which was promoted as instant noodles. Once Maggi completed its 25 years in the Indian market, Nestle approached Amitabh Bacchan, greatest in the Indian film industry to promote Maggi (Bharucha, 2016). This resulted in extensive popularity and Maggi gained the highest status among all products of Nestle in India.
Independent Variable: Revamping brand identity
Strong brand management of a company is mostly identified with its ability to hit back in a market. There are several ideas which can be used in case of revamping a particular brand’s identity in a market. Identification and solution of a problem which causes the brand to fail are significant. This directly results in knowing the brand inside out and helps in targeting the specific customers as well. As seen in the case of Nestle, Maggi had largely fallen due to the manipulation of facts which had resulted in a growing concern of health problems among people. The FSSAI has identified that Maggi contains a high amount of MSG and Lead which is harmful to kids and adults. This resulted in a decrease in market share for Maggi by 80% within a span of a month.
Nestle identified the problem with its strong management efforts and created a particularly new form of Maggi which had a low amount of lead and MSG and awaited the court’s permission to release it as well. This technique is related to getting creative over a similar product and re-launching a product which was already popular in a market. As Yadav and Srivastava (2019) say, ‘logo of a brand will be outdated as well as the underlying issue, however, a holistic approach towards the problem will make elements of rebranding more successful than ever.’
Branding Theory
The branding theory is one of the popular theories of brand management available and is mostly followed by a huge number of companies worldwide and in greater domestic markets. According to the study by San Martín Gutiérrez et al. (2018), there are three major areas of this theory which are related to Design, Value Proposition and Positioning Alignment. The above mentioned three aspects are followed by 5 different components which majorly act as players in effective and strong brand management.
- Portrayal of business standards with the help of a brand’s products is significant since the names of the brand become more popular in this case
- Making people aware of the brand
- Providing the consumers what they actually want from the brand
- Establishment of a close and personal relationship with the customers
- Trying to make the sub-brand a top player without making any compromises in brand development
Design is the way that a brand proposes its products to the customers in the niche market. According to Atwal and Williams (2017), the value proposition of a brand is related to the value which the product provides to the customers and positioning statement is the aim of the company which it delivers through the product.
In the case of Nestle, Maggi was a cemented approach from the brand as it leads to the food and drinks industry. Nestle identified the niche market of India and created Maggi with the thought of offering instant noodles to the customers. This was a unique approach and was largely accepted by the people of India as well.
Methodology
Research Philosophy
Research philosophy can be termed as self-belief of researchers by which data collection phenomenon can be determined accurately. As pointed out by Aithal (2017), it is important for any research to gain factual knowledge for accomplishing whole process with proper objectives. In order to detect marketing strategy and its modification for Nestle Maggi, realism research philosophy will be followed that can help to acquire critical knowledge in business process. On the other hand, in depth analysis of all the subjective and objective norms can be possible. However, interpretivism approach will be rejected by researchers because of bias and provision of personal viewpoint of the researchers. In addition, positivism research philosophy will not be followed in this study because of extreme complexity for data collection and data analysis process. Apart from this, pragmatism philosophy will not be considered also as it does not able to provide generalise view over a research topic.
Research Approach
Research approach is a strategic plans and procedures of a research by which all the steps of research can be monitored with greater relevancy. On the other hand, research problem can be solved without any extra hurdle by implying proper approach in business process. As per the view of Venable et al. (2017), inductive and deductive are two major kinds of research approach by which it can be possible to analyse collected data proficiently. In case to find out management strategy of Nestle Maggi, inductive research approach will be acquired to compare past and present condition of this organisation. Along with this, inductive research approach can help to provide feasibility for this study by elaborating all theoretical facts. However, Basias and Pollalis (2018) mentioned that deductive approach can able to measure quantitative data for any research. Therefore, researchers will reject this phenomenon to deliver proper assumption in qualitative and quantitative methods.
Research Design
Research design is a set of process and procedures to measure contemporary issues for a study and analysis of all variables can be possible. In addition, research problem can be addressed accurately by acquiring proper research design and blueprint of collected data can be monitored properly. As per the opinion of Goldberg et al. (2017), research design can be categorised in three divisions such as explanatory, exploratory and descriptive. Among these three methods, business analysis and its evaluation can be possible by engaging descriptive research design in study process. Henceforth, issues and sustainability monitoring of Nestle Maggi can be accomplished with the help of descriptive research design by maintaining proper relationship for all variables. On the other hand, explanatory research design will not be considered by the researchers because of its bias interpretation scheme. Apart from this, deliverance of theoretical knowledge is a reason to reject exploratory research design in this study.
Sampling technique
Sampling technique can be termed as a pattern or strategy that helps to determine study populations for a research and it becomes easy to set proper data collection method. As pointed out by Ulmer (2017), accuracy in sampling technique is needed to deliver proper information for researchers about collected data. In order to detect crisis management theme of Nestle Maggi, random sampling technique will be acquired by the researchers to collect data from plenty of resources. This technique can help to select samples from various locations and management perspectives can be elaborated accurately. Other sampling techniques such as stratified sampling or clustered sampling will not be engaged in this research process as all of these can deliver bias results. 101 participants will be selected for this study and survey scheme can be applied to understand perspectives of population. Literary resources of previous researches can also be considered as sample in case of qualitative data analysis method.
Data collection method
Collection of data is necessary for any business research as it helps to provide in field information of study and further analysis can be possible accurately. In order to determine management strategies and its impact on Nestle Maggi, data can be collected from both the primary and secondary sources. Interview and survey can be accommodated by the researchers to collected infield data by engaging employees and customers of the above mentioned company. As pointed out by Cuervo‐Cazurra et al. (2017), primary data collection provides specificity in research process and elicitation of any study can be continued smoothly. Therefore, this decision of researchers can help them to fulfil research objectives by maintain ethics for all participants. On the other hand, Fletcher (2017) commented that secondary data collection process takes minimum time and it becomes possible to fulfil research in a cost friendly way. Henceforth, researchers will also have collected data from secondary sources and different journals and newspaper articles can be considered as samples.
Data analysis method
Analysis of data is required for any business research to represent collected data properly towards participants and organisational community. For determining internal crisis management formula of Nestle Maggi, both the qualitative and quantitative data analysis method will be considered by the researchers to gain real time information about current business practice of this organisation. As per the opinion of Mohajan (2018), quantitative data analysis method can help to deliver numerical value for a research. In order to accomplish quantitative data analysis, Ms-Excel will be used by the researchers to represent collected data by showing graphs, charts and tables. On the contrary, Ørngreen and Levinsen (2017) pointed out that qualitative data analyse helps to deliver proper themes and theoretical upbringing can also be possible. Therefore, previous research on Nestle Maggi and its management can be considered for qualitative data analysis purpose.
Ethical consideration
Ethics is important for any research to gain trust and confidence from participants and completing whole study process without any hurdles. In case of this research, internal management strategy of Nestle Maggi can be considered and all the private data of this organisation can be stored properly. On the other hand, name of each participant will be confidential and demographic information cannot be spread out. Along with this, survey and interview questions can be made without harming any study sample. On the other hand, acknowledgement can be provided for previous researchers and their papers used as secondary data sources. In addition, consent form will be delivered for study participants to understand demands and complaints of each of the employees and customers. Apart from this, a special folder will also be developed to store confidential research data for improving reliability and validity of this business study.
Conclusion
Conclusion
It can be interpreted from this study that selling of products outside the shop is initial marketing strategy of Nestle Maggi for developing customer base across the globe. On the other hand, it can be informed by this study that any kind of marketing crisis can be solved accurately by this organisation through innovation. In order to accomplish this study on pro and pre crisis marketing liabilities of Nestle Maggi can be considered. On the other hand, realism research philosophy will be followed to measure all the facts in a critical way. On the other hand, implementation of both the qualitative and quantitative data analysis method will be acquired to understand customers’ perception. Moreover, study process can be ensured without any hurdles and research ethics and confidentiality can be maintained properly.
Recommendations
Business research on Nestle Maggi can be improved by following recommendations that are given below and subjective norms of this study can also be maintained properly.
- It can be recommended for researchers to go through internal audit of the above mentioned company to gain data about economic stability. As per the view of Zafar et al. (2017), brand equality and reputation can be measured properly through balance sheet analysis. Therefore, this suggestion can help researchers to gain better knowledge about change management strategy of this organisation.
- It can be suggested for researchers mainly to collect primary data from field that helps to provide real time information about management strategy. As per the opinion of Deming (2018), perspectives of all consumers can be understood properly by field survey. Therefore, accomplishment of survey and proper interview process can help this organisation to develop view in business research.
References
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Aithal, P.S., 2017. ABCD Analysis as Research Methodology in Company Case Studies. International Journal of Management, Technology, and Social Sciences (IJMTS), 2(2), pp.40-54.
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Basias, N. and Pollalis, Y., 2018. Quantitative and qualitative research in business & technology: Justifying a suitable research methodology. Review of Integrative Business and Economics Research, 7, pp.91-105.
Bharucha, J., 2016. Cadbury Vs Nestle: A Study of The Chocolate War. International Journal of Research in Social Sciences, 6(9), pp.609-620.
Burmann, C., Riley, N.M., Halaszovich, T. and Schade, M., 2017. Strategic Brand Management. In Identity-Based Brand Management (pp. 91-172). Springer Gabler, Wiesbaden.
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