An analysis has been done on the Maggi Ban in 2015, and the way brand has been able to recover from the muddle.

1. Product & Brand Analysis of
Maggi Post Ban

3. A study on..
Changes in Sales and Distribution Strategy
Impact on Competitors During & Post Ban
(Shelf Space, Market Behavior, Market Share, Stock Prices, Adoption Level,
Marketing Strategy by Competitors)
Change in Consumer Behavior for Maggi
PR efforts and Brand Communication Analysis

4. Secondary Research
YouTube- Thought Leadership
Videos
Nestle’s Annual Report
Nestlé's Press Conferences
News
Primary Research
Geographies Covered- Bangalore,
Indore, Bhubaneshwar & Delhi
Retailers Covered- 37
Distributor- 01
Consumer & Customer
Interaction- 130+
Methodology Adopted..

5. LO 1- Was Maggi successful in regaining its lost market share? If yes,
then how?
LO 2- Was Maggi’s Product Line Extension a Good Idea?
LO3- Was Maggi able to overcome the negative sentiments of the
market?
LO4- Brand Re-adoption after ban
LO5- Impact on Competitors during the Maggi Muddle
Learning Objectives

6. The Marketing Mix..
The Product
• Noodles – Masala Noodles, Chicken
Noodles, no onion no garlic noodles,
Atta Noodles, Oats Masala Noodles,
Asian inspired noodles
• On the Go Noodles – Same flavours in
cup noodles format
• Cooking-Aids– Maggi Masala-ae-
Magic, coconut milk powder, Chicken
Masala
• Pasta – Masala, Mushroom, Tomato &
Cheese Macaroni
• Sauces – Tomato Ketchup & Pudina
Ketchup
Price
• Penetration pricing strategy
• Low pricing strategy as customers
mostly average middle class group
• Historically Maggi has reduced
quantity in a product instead of raising
the prices however after 2015 they
raised the price by small fraction
• Bundle pricing

7. Place
• Nestle – Decentralised manufacturing,
twofold path of distribution first
retailers then malls & shopping
centres
• Distributors – Margin of 6% on every
product
• Retailers – 15% margin on
promotional products and 10%
margin on normal products, 8700
distributors as of 2019
• E-commerce – Flipkart, Amazon,
Snapdeal, Big basket, groffers etc.
• Same margin on offer
Promotion
• Increased spend on marketing
• H1’18 to H1’19 increase of 18.5%
• Digital Media spends growing at CAGR
of 45 % for the last 4 years
The Marketing Mix.. (contd..)

8. LO 1- Was Maggi successful in regaining its lost market share?

9. Line Extension of Maggi
Maggi
Noodles
On the go
noodles
Cooking
Aids
Pazzta Sauces

11. LO 2- Was Maggi’s Product Line Extension a Good Idea?
Extension – Health Conscious Noodles
Target Market – Health Conscious
youth, Mothers, Working professionals
Positioning – Healthy Instant noodles,
fibre contents, all age groups
Advertisements - Taste bhi health bhi,
showing goodness of health
Extension - On the go noodles
Target Market – Travellers, hostellers,
working professionals
Positioning – same taste anywhere
anytime
Advertisements – Kyuki Bhook Kahi
Bhi Lag Sakti Hai

13. LO3- Was Maggi able to overcome the negative sentiments
of the market?

14. LO4- Brand Re-adoption after ban
In 2016
Maggi’s share ↓40%
Sunfeast Yippie- ↑30%
Wai Wai- ↑15%
In 2019
Maggi’s share ~60%
Sunfeast Yippie- ~22%
Wai Wai- ~18%
Source: Nielsen Report
Maggi’s Product Line Extension
has somewhat helped Maggi
regain it’s market share upto 60%

15. LO5- Impact on Competitors during the Maggi Muddle
Top Ramen
(Delicious
Taste Maker)
Sunfeast
Yippee
(Patriotism)
Chings
(Variety)
Knorr
(Soupy
Noodles)
Patanjali
(Baba
Ramdev)

16. Inferences from Retail Visits
• Competitors started leveraging the opportunity (offers & rise in margin)
• Age group that buys the most: 15-25 (college students) followed by 25-45
(mothers)
• Margin provided to retailers:
- Maggi: 12-14%
- Yipee: 17-20%
• Brand that sells the most: Maggi (post re launch)
• Distributors switched back to Maggi immediately (but not at previous
scale)
• Offers by Maggi during relaunch :
- Margin Increase
- More focus on Push strategy

17. Segmentation
Lifestyle- Fast Paced, Time Savvy, Convenience Seeking
Eating habits- Twice a week , Occasional
Age – 8-38 (significantly)
Income- Available in different price ranges starting from Rs 5/-

18. TargetCustomers
• Youth / College Students
• Working Professionals
• People who find it difficult to cook
• Kids
• Teenagers
• Working Mothers

19. Point of Parity
• Instant Noodles
• Convenience savvy time misers
• Ease to make
• Cost effective fix for hunger
Point of Difference
• Taste
• Flavour
• Packaging
• Availability in different sizes & prices
• Marketing Campaigns

20. Positioning of Maggi
Pre-BAN
• Bhook staaye, Maggi ho jaaye
• 2 minute me khushiyaan
• 2 minute noodles
https://www.youtube.com/watch?v=A5Vaki6
CqM8
Post-BAN
• Taste bhi health bhi
• Healthy and Fast Food, Good to Eat
• Meri Maggi, Meri Masti
https://www.youtube.com/watch?v=ZV6NqX
65__U
https://www.youtube.com/watch?v=T6M12S
ruZJM

21. Re-Launch Strategy
• 25 new product launches within 2 months of re-launch
• Targetted the HEALTH CONCIOUS customers
• Maggi Atta Noodles, Oats, Kitchen Masala, Soup, Pichkoo
• Social Media campaigns #WeMissYouToo

22. Promotional Campaigns..
We Miss you Too
Hashtag Campaigns
Social Media Campaigns
Test Results

23. Exclusive Relaunch via Snapdeal
Exclusive Launch
AdvertisementsWebsite Interface

24. Social Media Activity

25. PRINT MEDIA CAMPAIGN

26. TV CAMPAIGNS
WELCOME BACK CAMPAIGN (T.V)

27. WELCOME BACK Campaign Series

28. In the area of consumer reassurance post the Crisis
• Should have made more use of FSSAI clearance during promotions
Our Recommendations..

29. In the area of Retail Channel Engagement post the Crisis
• Accessibility across villages, hence setting up distribution centres
(Potential to reach over 600,000 villages but current count is 50,000
villages)
Our Recommendations.. Contd..

30. Sources Referred..
• https://www.moneycontrol.com/news/business/companies/maggi-
fights-to-retain-market-share-after-sc-reopens-food-contamination-
case-3356861.html
• https://glean.info/pr-crisis-management-lessons-from-the-nestle-
maggi-noodle-controversy/
• https://www.marketing91.com/marketing-mix-of-maggi/
• https://www.marketing91.com/marketing-mix-of-maggi/
• https://www.livemint.com/Companies/xyFCHn7hGJm1zUkesEVy5L/H
ow-Nestle-is-rebuilding-in-India18-months-after-the-Maggi.html

31. Thank You!