This document summarizes a case study about Maggi noodles in India. It discusses how Maggi was India's third largest FMCG brand until a food safety scandal in 2014 related to lead content. The document outlines Nestle's strategies pre-scandal such as targeting kids, office workers and time-strapped consumers. It also discusses Nestle's responses during the crisis period which included a product recall, surveys and using social media to engage customers. The financial and market impacts of the scandal are summarized as well as Nestle's post-crisis strategies to regain customer trust.
Maggi seems to be just that perfect quick-snack between meals and is so easy to make that kids sometime make it alone. At the end of May 2015, India’s Food safety administration (FDA) ordered Nestle India to recall its popular Maggi noodles after tests showed that the product contained high levels of lead and MSG. Hence, the 2-minutes ready Maggi Noodles ban in India was declared.
Maggi India Twitter account makes an impressive effort to respond to every tweet from customers on this issue with a pre-prepared statement explaining that lead occurs naturally in soil and water.
Maggi India Twitter account makes an impressive effort to respond to every tweet from customers on this issue with a pre-prepared statement explaining that lead occurs naturally in soil and water.
On August 13, the ban was set aside by the court but it asked Maggi to undergo a retest at labs certified by National Accreditation Board for Testing and Calibration.
DOWNFALL OF AN ICONIC BRAND: THE MAGGI CRISIS IN INDIAShubham Boni
DON'T FORGET TO LIKE AND SHARE THE PRESENTATION.
INTRODUCTION:-
1.Maggi was invented in Switzerland by Julius Maggi during the industrial revolution around 1820.
2.It is an international brand of seasonings, soups and noodles.
3.In 1947, Maggi merged with the NESTLE COMPANY.
4.Nestle began operations in India in 1912 and its first manufacturing unit in 1961.
5.It markets its products in 130 countries across the world.
6.Nestle put nutrition as the core of their business.
SUMMARY:-
1.On wednesday, june 1 2015, Delhi government banned the sale of maggi for 15 days and instructed Nestle India to withdraw its existing stock from market.
2.On June 3 2015, union foods and consumer affair minister Ram Vilas Paswan filed complaint with NCDRC, for engaging in “unfair trade practices”.
3.On June 5,2015 global CEO Paul Bulcke held a press conference.
4.FSSAI ordered Nestle India to withdraw all 9 variants of Maggi on grounds of Maggi packets stating ‘No added MSG’ which was misleading.
5.Retail stores like Walmart, Future group withdrew Maggi noodles from their stores.
6.In a short span exporting of Maggi suffered a downfall in the foreign market.
7.It is an Indian customer’s psyche that “whatever looks good and feels good would be of good quality” so Maggi packs had been designed keeping in mind the same concept.
REASONS FOR DOWNFALL:-
1.On March 10, 2014 UP Department officials tested confirmed presence of Lead and Monosodium Glutamate in Maggi.
2.Maggi tested positive for MSG, officials stated Maggi packets were labelled “No Added MSG” which was misleading.
DON'T FORGET TO LIKE AND SHARE THE PRESENTATION.
On wednesday, june 1 2015, Delhi government banned the sale of maggi for 15 days and instructed Nestle India to withdraw its existing stock from market.
On June 3 2015, union foods and consumer affair minister Ram Vilas Paswan filed complaint with NCDRC, for engaging in “unfair trade practices”.
On June 5,2015 global CEO Paul Bulcke held a press conference.
FSSAI ordered Nestle India to withdraw all 9 variants of Maggi on grounds of Maggi packets stating ‘No added MSG’ which was misleading.
Retail stores like Walmart, Future group
withdrew Maggi noodles from their stores.
In a short span exporting of Maggi suffered a downfall in the foreign market.
It is an Indian customer’s psyche that “whatever looks good and feels good would be of good quality” so Maggi packs had been designed keeping in mind the same concept.
Nestle Maggi went through a huge loss when officials found that the product can be hazardous to health. Due to this government of India banned Maggi across the country and a huge widespread of this news went viral in the market. However, Maggi again regain its position in the market and still stand at top. Here is a brief case study on how Maggi lost its power and then again bounce back in the market?
Maggi seems to be just that perfect quick-snack between meals and is so easy to make that kids sometime make it alone. At the end of May 2015, India’s Food safety administration (FDA) ordered Nestle India to recall its popular Maggi noodles after tests showed that the product contained high levels of lead and MSG. Hence, the 2-minutes ready Maggi Noodles ban in India was declared.
Maggi India Twitter account makes an impressive effort to respond to every tweet from customers on this issue with a pre-prepared statement explaining that lead occurs naturally in soil and water.
Maggi India Twitter account makes an impressive effort to respond to every tweet from customers on this issue with a pre-prepared statement explaining that lead occurs naturally in soil and water.
On August 13, the ban was set aside by the court but it asked Maggi to undergo a retest at labs certified by National Accreditation Board for Testing and Calibration.
DOWNFALL OF AN ICONIC BRAND: THE MAGGI CRISIS IN INDIAShubham Boni
DON'T FORGET TO LIKE AND SHARE THE PRESENTATION.
INTRODUCTION:-
1.Maggi was invented in Switzerland by Julius Maggi during the industrial revolution around 1820.
2.It is an international brand of seasonings, soups and noodles.
3.In 1947, Maggi merged with the NESTLE COMPANY.
4.Nestle began operations in India in 1912 and its first manufacturing unit in 1961.
5.It markets its products in 130 countries across the world.
6.Nestle put nutrition as the core of their business.
SUMMARY:-
1.On wednesday, june 1 2015, Delhi government banned the sale of maggi for 15 days and instructed Nestle India to withdraw its existing stock from market.
2.On June 3 2015, union foods and consumer affair minister Ram Vilas Paswan filed complaint with NCDRC, for engaging in “unfair trade practices”.
3.On June 5,2015 global CEO Paul Bulcke held a press conference.
4.FSSAI ordered Nestle India to withdraw all 9 variants of Maggi on grounds of Maggi packets stating ‘No added MSG’ which was misleading.
5.Retail stores like Walmart, Future group withdrew Maggi noodles from their stores.
6.In a short span exporting of Maggi suffered a downfall in the foreign market.
7.It is an Indian customer’s psyche that “whatever looks good and feels good would be of good quality” so Maggi packs had been designed keeping in mind the same concept.
REASONS FOR DOWNFALL:-
1.On March 10, 2014 UP Department officials tested confirmed presence of Lead and Monosodium Glutamate in Maggi.
2.Maggi tested positive for MSG, officials stated Maggi packets were labelled “No Added MSG” which was misleading.
DON'T FORGET TO LIKE AND SHARE THE PRESENTATION.
On wednesday, june 1 2015, Delhi government banned the sale of maggi for 15 days and instructed Nestle India to withdraw its existing stock from market.
On June 3 2015, union foods and consumer affair minister Ram Vilas Paswan filed complaint with NCDRC, for engaging in “unfair trade practices”.
On June 5,2015 global CEO Paul Bulcke held a press conference.
FSSAI ordered Nestle India to withdraw all 9 variants of Maggi on grounds of Maggi packets stating ‘No added MSG’ which was misleading.
Retail stores like Walmart, Future group
withdrew Maggi noodles from their stores.
In a short span exporting of Maggi suffered a downfall in the foreign market.
It is an Indian customer’s psyche that “whatever looks good and feels good would be of good quality” so Maggi packs had been designed keeping in mind the same concept.
Nestle Maggi went through a huge loss when officials found that the product can be hazardous to health. Due to this government of India banned Maggi across the country and a huge widespread of this news went viral in the market. However, Maggi again regain its position in the market and still stand at top. Here is a brief case study on how Maggi lost its power and then again bounce back in the market?
A brand is not developed overnight, it struggles through various factors and rises by implementing various strategies. Hers is success story of one such brand Maggi and the strategies it devices.
Brand management case maggi (final version)DINESH GERA
It was part of brand management evaluation during semester - 4. We did critical analysis on the brand reach as well as how the brand returned in market with bang on strategy, though it does not cover the current problems faced by brand but still a must read for all the maggi lovers & brand management students.
The Nestle Maggi Noodle Crisis: A Brief Overview
In 2015, Nestle faced a significant food safety controversy involving its popular instant noodle brand, Maggi, in India. The crisis began in May when the Food Safety and Standards Authority of India (FSSAI) ordered a nationwide recall of nine Maggi noodle variants due to higher-than-permissible levels of lead and MSG (monosodium glutamate). The FSSAI also accused Nestle of misleading advertising and labeling practices.
The news of the recall spread rapidly, leading to a severe impact on Nestle's business. The company had to recall and destroy over 30,000 tons of Maggi noodles, costing over $50 million. Sales of the product plummeted, and Nestle's share price fell, tarnishing its reputation as a trusted and reliable brand.
Nestle responded to the crisis by cooperating with regulatory agencies, addressing their concerns, and launching a public relations campaign to restore consumer confidence. In August 2015, Nestle announced that lead levels in Maggi noodles were within permissible limits and that the product was safe to eat. New packaging was introduced, emphasizing the product's safety and lack of MSG.
In November 2015, the Bombay High Court lifted the ban on Maggi noodles, criticizing the FSSAI's "arbitrary and irrational" actions and unprofessional testing procedures. Nestle worked hard to regain consumer trust and rebuild its brand, investing in marketing campaigns and making significant changes to its supply chain and quality assurance processes.
The company's efforts paid off, and Maggi noodles gradually regained their popularity in India. By 2016, the product had recaptured a significant market share, and Nestle's sales and profits returned to pre-crisis levels. The Maggi crisis served as a wake-up call for Nestle and the food industry, highlighting the importance of food safety standards, corporate responsibility, and the power of social media in shaping public opinion and driving corporate accountability.
Brand prism gives an idea about the aspect of Maggie as a brand. It talks about personality of maggie brand. Its internal and external lookout from its own and customer's point of view
A brand is not developed overnight, it struggles through various factors and rises by implementing various strategies. Hers is success story of one such brand Maggi and the strategies it devices.
Brand management case maggi (final version)DINESH GERA
It was part of brand management evaluation during semester - 4. We did critical analysis on the brand reach as well as how the brand returned in market with bang on strategy, though it does not cover the current problems faced by brand but still a must read for all the maggi lovers & brand management students.
The Nestle Maggi Noodle Crisis: A Brief Overview
In 2015, Nestle faced a significant food safety controversy involving its popular instant noodle brand, Maggi, in India. The crisis began in May when the Food Safety and Standards Authority of India (FSSAI) ordered a nationwide recall of nine Maggi noodle variants due to higher-than-permissible levels of lead and MSG (monosodium glutamate). The FSSAI also accused Nestle of misleading advertising and labeling practices.
The news of the recall spread rapidly, leading to a severe impact on Nestle's business. The company had to recall and destroy over 30,000 tons of Maggi noodles, costing over $50 million. Sales of the product plummeted, and Nestle's share price fell, tarnishing its reputation as a trusted and reliable brand.
Nestle responded to the crisis by cooperating with regulatory agencies, addressing their concerns, and launching a public relations campaign to restore consumer confidence. In August 2015, Nestle announced that lead levels in Maggi noodles were within permissible limits and that the product was safe to eat. New packaging was introduced, emphasizing the product's safety and lack of MSG.
In November 2015, the Bombay High Court lifted the ban on Maggi noodles, criticizing the FSSAI's "arbitrary and irrational" actions and unprofessional testing procedures. Nestle worked hard to regain consumer trust and rebuild its brand, investing in marketing campaigns and making significant changes to its supply chain and quality assurance processes.
The company's efforts paid off, and Maggi noodles gradually regained their popularity in India. By 2016, the product had recaptured a significant market share, and Nestle's sales and profits returned to pre-crisis levels. The Maggi crisis served as a wake-up call for Nestle and the food industry, highlighting the importance of food safety standards, corporate responsibility, and the power of social media in shaping public opinion and driving corporate accountability.
Brand prism gives an idea about the aspect of Maggie as a brand. It talks about personality of maggie brand. Its internal and external lookout from its own and customer's point of view
Public Relations strategy of Maggi when they fall under deep crises of excessive lead content. Banned on Maggi was emotional for Inidans and soon Maggi with its PR techniqes, bloomed and captured market with the same enthusiasm.
Brand Loyalty and Consumer Buying Behaviour towards maggiUtkarsh Verma
A Project on the consumer buying behaviour and brand loyalty towards nestle maggi after the recent ban that it went through,
this project focuses on each aspect of the brand internally and externally to analyse and interpret the results after proper research.
At Taste Of Middle East, we believe that food is not just about satisfying hunger, it's about experiencing different cultures and traditions. Our restaurant concept is based on selecting famous dishes from Iran, Turkey, Afghanistan, and other Arabic countries to give our customers an authentic taste of the Middle East
Roti Bank Hyderabad: A Beacon of Hope and NourishmentRoti Bank
One of the top cities of India, Hyderabad is the capital of Telangana and home to some of the biggest companies. But the other aspect of the city is a huge chunk of population that is even deprived of the food and shelter. There are many people in Hyderabad that are not having access to
Ang Chong Yi Navigating Singaporean Flavors: A Journey from Cultural Heritage...Ang Chong Yi
In the heart of Singapore, where tradition meets modernity, He embarks on a culinary adventure that transcends borders. His mission? Ang Chong Yi Exploring the Cultural Heritage and Identity in Singaporean Cuisine. To explore the rich tapestry of flavours that define Singaporean cuisine while embracing innovative plant-based approaches. Join us as we follow his footsteps through bustling markets, hidden hawker stalls, and vibrant street corners.
3. SYNOPSIS OF THE CASE
• The case deals with pre and post ban effects of Maggi in India .
• Nestle India was India's third largest FMCG company after HUL and ITC
enjoying distinct advantage over competitors in the food and beverage space.
• Even after 31 years, it enjoys one-third of the noodles market share in India.
• The tough phase of maggi started on 10 March 2014 when FSSAI issued a
statement pointing out 3 major violations
• To sustain the crisis period Nestle India adopted many strategies such as
voluntary recall of stock, internal survey, usage of social media etc…
• Repositioning strategies to win the confidence such as heavy promotion,
24x7 consumer engagement services, Unique website to address concerns
4. TARGET AUDIENCE
• The Maggi brand have main targeted the
1. Kids
2. Youth
3. Office goers
4. Working women
• which falls in to category of “convenience savvy time misers” who
would like to get some thing instant and be over with it quickly
5. PRODUCT, WHAT WENT WRONG
• Release of Maggi oats masala noodles in the market without risk
assessment and grant of product approval
• Misleading consumers by printing ‘No added MSG’ on the
Maggi packets
• Presence of lead in excess of the max permissible levels 2.5ppm
where as in Maggi it is nearly 17.5ppm
6. MAGGI PRICING
• Considering the price points in the market for Maggi it should continue to
position itself in the snacks
• Affordable by all income groups
• Lower price point strategy
• Inflation effect on volume than price- Reduction of 100grams pack to 95
grams, keeping price at Rs.10 only
• Differentiated packing multi packs at cheaper price while healthier packs at
higher price
• Maggi 2 minute noodles entered in to Indian market with price of 2.10 rs
with a close of 100% margin
7. MARKET PENTREATION
• Promotional campaigns in school
• Advertising strategies : focusing on kids
• New product innovation according to the need of the consumers:
-Veg Atta noodles
-Cuppa mania
• Availability in different packages
• Conducting regular market research
• Maggi became omnipresent travelling across India available at reharis to
hotels, hilly areas to islands, High- tech cities to under developed villages
8. POSITIONING
• Positioned their product with the well know slogan
• “2-minute noodles”
• “taste bhi health bhi”
• “Easy to cook good to eat”
• Positioned their product as to get fast relief from hunger
PROMOTION
• 2008 Me and meri Maggi campaign, during its silver jubilee year
• Scratch n win offer
• Money back offer
• Price-off offer
• Sponsor school quiz…
10. FINANCIAL IMPACT
• Withdrawal of stocks of Maggi allover India
• Due to litigation filed against the company, it also saw an increase in legal and
other expenditure as well
• The company, which has been working with Nestle since the last three
decades and supplies spices to it every month, shut the production lines
catering to Nestle
• Share market suddenly collapsed for Nestle India limited
• Not only the sales of noodles but other Maggi food items like ketchup, pasta,
and cooking aids were also impacted with the company’s goodwill taking a
major hit
11. POST IMPACT TARGETD AUDIENCE
• People staying away from their home
• Working women
• Kids
• Office goers
12. NETWORK STRATEGY
• Me and Meri Maggi campaign
• #WeMissYouToo Share this & keep spreading the MAGGI love!
• “Your Maggi is safe, has always been”
• #maggiInasoup
• Heavy Promotions
• 24x7 customer Engagement Service
• Unique website to address concerns
