A presentation on the marketing techniques utilized by Maggi to bounced back to regain its market share after being banned for months.

1. The Reincarnation of Maggi
&
Its Importance in Tourism
DIVYAJIT
Master’s in Business Administration (Third Semester),
Indian Institute of Tourism & Travel Management, Gwalior.

2. MAGGI….. A Brief Introduction
• Nestle India Ltd, the Indian subsidiary of the global FMCG major, introduced the
Maggi (an instant noodles product)brand in India in 1982.
• With the launch of Maggi noodles, NIL created an entirely new food category - instant
noodles -in the Indian packaged food market.
• Maggi, the original company came into existence in 1875 in Switzerland, when Julius
Maggi took over his father's mill.
• Maggi was the first to bring protein-rich legume meal to the market. Maggi launched
in India at a time instant noodles market was not a popular one.

3. • Nestle launched Maggi in India with the tagline: ‘Fast to cook and good to eat’ i.e.
they focused on Convenience and Health by positioning itself as ‘the 2-minute
noodles.
• On June 5, the Food Safety and Standards Authority of India (FSSAI) had ordered a
pan-India ban on the Nestle India's Maggie Noodle on the ground that these were
"unsafe and hazardous" for humans due to the presence of lead, beyond
permissible limits.
• The report says that samples of Maggi 2 Minute Noodles had unexpectedly high
levels of monosodium glutamate, as well as up to 17 times the permissible limit of
lead and it resulted in various health issues.

4. • As per a research paper done by Karpagavalli. G & Dr. A Ravi, (Bharathiar University,
Coimbatore) titled NESTLÉ’S MAGGI IS ON THE SHELVES -A CASE STUDY ON
DELIVERING BUSINESS STRATEGY, it is stated that there was a steep decline in the sale of
maggi after the report of the excess amount of lead and MSG in it. This caused a lot of
problem for the company at that time. But after the relaunch of the product after a five
month ban, it has rapidly regained its market share.
• As per a survey conducted by the team of Trek the Himalayas, Maagi is one of the most
preferred foods by the trekkers after fruit juices. It is easier to prepare on high altitudes
and is a good source to fill the stomach as trekkers are mostly asked to do the trekking
half stomach.

5. BAN ON MAGGI
By Whom:
An officer, Sanjay Singh, of the UP Food Safety and Drug Administration based in
Barabanki (Uttar Pradesh) ordered tests on a dozen samples of Nestle’s Maggi
instant noodles at the state laboratory in Gorakhpur, and repeat tests at the Central
Food Laboratory in Kolkata.
When:
On June 5 , 2015 as per the order of FSSAI.
Reasons:
• Exceeded the permissible level of lead i.e. 17.2 parts per million.
• Level of monosodium glutamate (MSG) not mentioned in the packet.

6. EFFECTS IN INDIAN MARKET
• Loss of over Rs. 64.40 crores (July – September, 2015).
• Net sales was down 32.12% (2,557 crores to 1,736 crores).
• 7200 employees were working under Nestle India.
• The employees were reassigned to other job roles during the ban.

7. CRISIS MANAGEMENT BY MAGGI
• Nestle continued to keep its customers up to date on the
investigation into the safety of Maggi noodles in India. Nestle
stated on the official Maggi Noodles Facebook page, Twitter and
website, that extensive testing revealed no excess lead in Maggi
Noodles.
• Nestle used its Twitter & Facebook accounts to answer customers
questions about the levels of MSG and lead found in their noodles.
• Nestle launched a FAQ page on the official website.

8. • Through smart use of social media during the crisis, the brand limited further
damage by reassuring and informing customers to encourage them to continue
buying the noodles in the future.
• To defend itself in the international market, Nestle got its products tested and
verified in various laboratories and agencies all around the world and got the
results published publicly published to prove its standard of quality all around.

9. • Nestle recalled all Maggi noodles from India. After re-assuring customers that its
noodles are safe, the brand did a U-turn and decided to recall Maggi noodles from the
shelves.
• Nestle decided to destroy more than 300 crores worth of Maggi Noodles in India after
they were deemed unsafe by regulators. They gave the contract to Ambuja cements and
paid 20 crores for it.

10. MARKETING STRATEGY FOR RELAUNCH
1.Using the nostalgia factor
Maggi has always made family-based advertisements to attract its
customers. Most of the ads were around mothers delighting their
children with the favourite two-minute noodles.
2. Making it exclusive
Like with everything else, consumers thrive on the feeling of owning a
product or service ‘exclusively’. Maggi played its cards smartly when it
decided to take this into account by making a deal with Snapdeal,
which became the only platform where Maggi packets were sold
before its official comeback into the shelves of all stores.

11. 3. The perfect medium for the launch
Along with increased spending on television ad space, Maggi was
relentless in its promotions of the upcoming relaunch on social media.
Using the full force of its high held presence on a platform like Facebook,
which has more than 275,000 likes on it and a 95,700 following on
Twitter.
4. Keeping in touch through increased ad space.
After the fiasco of the Maggi ban, its parent company Nestle decided to
increase its spending on television commercials, leading to a growth of
its ad volume to about 96% by September, 2015 .The first print
advertisement that accompanied the announcement of the relaunch
read — “Your Maggi is safe, has always been.”

12. MAGGI IN TOURISM

14. MAGGI BAN: Why are Uttarakhand farmers aghast?
The cultivators who take pride in feeding the world have no time to cook for themselves during the
harvest season, and that is why they rely on the 2-minute noodles.
• These terrace cultivators who take pride in feeding the world have no time to cook for themselves
during the harvest season. That is when they rely on a Maggi saag (gravy) and ragi or wheat rotis.
• Shyam Singh Rawat of Pauri explains the plight of an organic farmer, “My wife is busy on the farm all
day and my kids try to help her out. I have a small livestock to tend to. When we reach home in the
evening, we want a quick and filling meal. Maggi saag and roti fits the bill.”
• Harsh Singh, a taxi driver, says he will be missing his ‘short cut’ food. “It is peak tourist season during
the Char Dham Yatra, so there is hardly any time to eat or sleep. It is the only time I can make money
for a whole year. Eating daal-rice would take so much time, so Maggi was a short-cut to my meals.”

15. MAGGI POINTS AT VARIOUS TOURIST DESTINATION
• Ulhas Valley, Khandala (Maharastra)
If there is one thing that even ‘Mr Perfectionist’ Aamir Khan missed in
the song ‘Aati kya khandala…’ was a pack of Maggi!
• Sonu Ki Tapri, Futala ,Nagpur (Maharastra)
Famed as one of the most popular hangouts in Futala, Nagpur, Sonu Ki
Tapri is undoubtedly one of the highest visited and renowned
destinations to savor on Maggi along with other beverages.
• Kalavantin Durg, Panvel (Maharastra)
In case, the hike gives you goose bumps, you definitely need a Maggi
and overcome your fear!
• Kanchenjunga Base Camp, Sikkim.
Imagine a hot and yummy bowl of Maggi after an exhilarating trek in
the Himalayan Range!

16. • Gondola, Gulmarg.
Glide over the mesmerizing beauty of Gulmarg, and upon its completion, take
the much needed Maggi break and come alive at less than 0 degree Celsius.
• Khardung La Pass, Ladakh.
Amidst the snow-capped mountains, Maggi tastes absolutely heavenly. This has
been agreed by most bikers, trekkers and travelers who have been to Ladakh.
Now, the journey will have to be completed without their favorite food.
• Hassan Valley, Kufri, Shimla.
No doubt this place is beyond imagination, the epitome of natural vegetation.
Many tourists visit this place to have a look at its beauty while some especially
travel a long way to taste a hot bowl of mouthwatering Maggi. Hills bring a
different flavor to this simple pack of Maggi.
• Maggi Point, Rafting Miles, Rishikesh .
Rishikesh is known as the rafting spot in the country. And while in there making
the most of this water sports, there is one ritual that everyone follows, Maggi
breaks. People actually sail their boats a long way to satiate their craving for a
delicious bowl of Maggi.

17. REFERENCES
• International Journal of Management & Social Sciences Research (IJMSSR) Volume 4, October, 2015.
• “What’s at Stake: Maggi Noodles Story” , A case study by Dr. Jaskaran Singh Dhillon, Tejbir Kaur , Dr.
Rubeena Bajwa of School of Commerce and Management, Sri Guru Granth Sahib World University,
Fatehgarh Sahib (Punjab).
• http://zeenews.india.com/business/news/companies/maggi-ban-in-india-to-be-a-case-study-at-
harvard-business-school_134436.html
• https://www.quora.com/Why-was-Maggi-banned
• http://www.digitalvidya.com/blog/nestle-maggi-noodles-banned-in-india-crisis-management/
• http://www.india.com/travel/articles/10-tourist-destinations-india-will-lose-charm-without-
maggi/amp/
• http://economictimes.indiatimes.com/industry/cons-products/food/maggi-ban-impact-nestle-india-
may-take-3-years-to-recover/articleshow/51114562.cms
• https://yourstory.com/2016/09/marketing-lessons-maggi/
• https://www.nestle.in/aboutus/ask- nestle/answers/maggi-noodles-india-safe