This is the solution of Maggi case study solution.

1. Q:1 Identify the key issues in the given case study.
The key issues face by the Maggi in 2015. India’s food regulatory body, the Food Safety and
Standards Authority of India (FSSAI), labelled Maggi as unsafe to human health after
samples showed excess levels of lead and monosodium glutamate (MSG). Maggi was banned
in India after the sample test results came. It was found to contain 17 parts per million (ppm)
of lead, which exceeded the permissible limit of 0.01 ppm. Due to this Maggi lost its trust of
customers. Nestle has to recall its stock from market worth 1.2 billion and with an additional
cost for materials valued at ₹1.1 billion, affecting various stages of the supply chain.
This controversy caused huge loss to Nestle. Nestlé India incurred a direct loss of 20 per cent
revenue due to the Maggi ban and nationwide recall. According to Brand Finance, the brand
value of Maggi was anticipated to fall by approximately ₹13 billion. Nestle’s stock fell by 15
% , resulting in a market capitalization loss of ₹100 billion.
It was highly likely that such a crisis could extend to other product lines or brands and also
spread to different continents at any stage of the business life cycle.
Nestle sent 200 of its employees for training which also added cost to nestle.
The other issue was a pressure to reposition the company as soon as possible. Due to ban the
other companies like Patanjali had grown so big. The relaunch strategy needed to be both
effective and timely to retain control of the market, which was threatened by Maggi’s main
competitors. Regaining these markets after a long absence could become a very difficult task.
Having a market share of 63%, nestle was nowhere in a position to avoid this product line. To
recover all the losses, it became imperative for Nestle to design a comeback. Management
was then grappling with an improved re-positioning strategy to help Nestle retain its
considerable market share in India.
In conclusion , presenting a SWOT analysis will bring clear idea to the issues.
STRENGTH
1. People trust brand value
2. Mutiple successful marketing
campaign
3. Reachability
WEAKNESS
1.Unhealty food content
2.Current Crisis
OPPERTUNITIES
Market Demand for quick food is high
THREAT
1. Competition
2. People's inclination towar Patanjali
3. Loss of trust due to current crisis
SWOT

2. Q2. Identify the challenges faced by Nestle after it suffered a nationwide ban on Maggie.
Ans- After the test of the Maggi and concern over the health and hygiene leads to the ban on
nestle to sell of Maggi in India.
There are many challenges faced by nestle after the crisis as under mention.
After the ban there is tangible loss and also intangible loss of the nestle considered as a
challenge.
After the crisis The stock recalled from the market was worth ₹2.1 billion,4 with an
additional cost for materials valued at ₹1.1 billion, affecting various stages of the supply
chain , Supply chain disruption also comes from the putting the ban on the Maggi sales.
After the crisis Nestlé India incurred a direct loss of 20 per cent revenue due to the Maggi ban
and nationwide recall. According to Brand Finance, the brand value of Maggi was anticipated
to fall by approximately ₹13 billion. Nestlé’s stock fell by 15 per cent, resulting in a market
capitalization loss of ₹100 billion, so there is a challenge over of the investors trust and
market capitalization of the company.
After the crisis the Maggi’s repositioning strategy includes whether to change the price ( up
or down) or design back with the same price , so there is a concern over the price.
After the crisis of the ban there is more Probability that it will affect it’s sales and it’s brand
value in different continentals.
After pausing the selling of many there is a challenge of maintaining and not loosing it’s
market share in the noodles market as three are many players in the noodles market.
As Maggi having the largest market share in their market and most trusted food product in the
India having a challenge of to retain their customers with the company’s repositioning
strategy.
Nestlé’s international market was also a concern. Indian-manufactured Maggi products were
directly exported to Canada, the United Kingdom, Singapore, and Kenya, and sold through
third parties in the United States, Australia, and New Zealand. Regaining these markets after
a long absence could become a very difficult task, this was also consider as a challenge of the
nestle.

3. 3.What were the brand positioning strategies adopted by Nestle India Ltd. to revive the
Maggie brand in India?
Nestlé India incurred a direct loss of 20 per cent revenue due to the Maggi ban and
nationwide recall. The relaunch strategy would require a focus on re-positioning, pricing, and
other operational issues.
If Nestle use pricing as its centre to comeback then it requires tradeoff between benefits and
price. As per the value map drawn out it is clear that Maggi have high perceived price and
perceived benefits then other brands in market.
Nestle concentrated on three key options to re-enter the Indian market: increase value with
the same prices, increase value with lower prices, or increase value with higher prices.
Undoubtedly, Maggi would increase both tangible value (making the product safe for
consumption) and intangible value (promote awareness through effective labelling).
The positioning Strategies Adopted were
1. Me and Meri Maggi
2. Meri Maggi : Do minute me khushiyan
3. #HealthyIsEnjoyable
1. Me and Meri Maggi
This campaign was launched in 2009 and went were successful. It was launched to celebrate
25 years of Maggi’s presence in India. The agenda of this campaign was to bring back the
good memories of Maggi in grown up who used to eat Maggi in regular basis. In this
campaign people were told to submit their stories with Maggi ( your Maggi story ). Over
40,000 stories were submitted by the customers. These stories included some emotional and
private moments involving Maggi. And the 50 best stories were printed on Maggi packaging.
Maggi also told customers to submit their filmed stories so that they can run in Maggi
advertising commercials.
After being overwhelmed by this Nestle gave birth to the free flavours. spicy flavour that we
named “Thrillin’ Curry,” the naughty stories inspired a khatta meetha tomato flavour that we
named “Tricky Tomato,” and the romantic Maggi stories inspired an aromatic capsicum
flavour that we called “Romantic Capsica.”
2. Meri Maggi : Do minute me khushiyan
This campaign was launched in 2012.The idea really came from the simple insight of how
Maggi noodles delivers joy to consumers across India and the love that they have for the
brand. Whenever you think “two minutes,” you think of Maggi. And Maggi is all about
“khushiyan” [happiness]. Put the two together and you have a simple, relevant- to-the-brand
idea of “two minutes mein khushiyan.” With this idea, we re-emphasized the brand’s
evolution from a functional two-minute proposition to an emotional two-minute proposition.

4. 3. #HealthyIsEnjoyable
This campaign was ran to launch the Maggi’s new product variation “Oats Noodles”.
Here nestle bring the celebrities in some of its advertisement. Madhuri Dixit Nene , a
Bollywood actress was positioned the new variant as a morning breakfast alternative.
The extensively used the power of social media to reach its target customers. This
campaign ran a selfie contest using hashtag #HealthyIsEnjoyable
Q:4 Discuss the role of digital media in promotion and repositioning of Maggi.
The role of digital media contributed a major role in promotion and repositioning of Maggi.
When it was found that there was a high lead content in Maggi there on social media there
was havoc of banning the Maggi from India, on Twitter the hashtag was running on
#banmaggi. The social media because curse for Nestle
After the ban was lifted , Maggie started to run advertisements on social media with its new
product – “Oats Noodles”. The social media became a boon for Maggi at that time and helped
Maggi to reach its target audience through social media.
The Maggi became stable after 2 -3 years and repositioned itself in the market. In conclusion
we can say that social media has a power to bring a person sitting in a throne to road and a
person sitting on road to throne. Same thing happened with Maggi.