Nestle's Maggi noodles faced a ban in India due to high levels of monosodium glutamate and lead, leading to significant financial losses and a drop in market share from 80% to zero. The company responded by recalling products, launching marketing campaigns, and preparing for a relaunch, which successfully restored Maggi's market share to over 60%. Despite initial setbacks, Nestle managed to recover by expanding their product offerings and emphasizing food safety collaboration with regulators.

1. Nestle:
Noodle Ban To Regain Market Share

2. Nestle
 Nestle is Swiss company founded 1866 .
 Nestle market its products in 130 countries across the world.
 Maggi is first introduced in 1872 in Switzerland by JULIUS
MAGGI.
 Later, it is owned by NESTLE company in 1947.

3. Maggi In India
 Maggi noodles are popular in India,
Bangladesh, Pakistan, Singapore,
Malaysia, Australia, New Zealand.
 Entered India in 1982 with it’s instant
noodles formula(2-minute noodles).
 With the launch of Maggi Noodles in
India it created an entirely new category
“Instant Noodles”.
 Maggi noodles earn 29.23% of nestle
India’s total sales in 2014-15.

4. Strategies To Enter In Indian
Market
 Maggi-2minute noodles entered into Indian market with price
of 2.10 Rupees with a close of 100% margin.
 Nestle positioned Maggi noodles as a convenience product for
mothers and as a fun product for children.
 Their tagline was “Fast to cook good to eat” was also suitable
for establishing their market positioning.

5. Major Competitors
80%
6%
4%
5% 5%
Market Share
Maggi Yipee noodles
Knorr Soupy Noodles Top Ramen
others

7. Maggi Ban
• FSSAI from UP founded unexpectedly high levels of
monosodium glutamate as well as 17% of lead in it.
• On June 5, FSSAI ordered Nestle India to withdraw all Maggi
instant noodles from the market.
• Maggi contains high amount of monosodium glutamate (MSG)
and lead.
• Maggi ban started from the Barabanki, Uttar Pradesh.

8. Reasons
Lead found in Maggi- 17.2
PPI (Proton pump
inhibitors).
Permissible limit range
of Lead - 0.01-2.50 ppi.
Presence of monosodium
glutamate (MSG)

10. Nestlé's Reaction
• The company rejected the accusation that the
noodles were unsafe.
• Nestle continued to keep its customers up to
date on the investigation into the safety of
Maggi noodles in India.
• Nestle launches a FAQ page on the official
website.
• Issued a press statement on 21st May, which
reassures consumers the brands commitment
to quality.
• The Brand has a page “Meri Maggi” on
Facebook and issued a similar statement
through a post.

11. • The brand did a U-turn and decided to
recall Maggi noodles from the shelves.
• Nestle decided to destroy more than
$50million worth of Maggi Noodles in
India after they were deemed unsafe by
regulators.
• Maggi India had embarked on a
Khushiyon Ki Recipe or ‘Moms Maggi’
campaign prior and post Mothers Day on
10th May
• Nestle India is preparing a blueprint for a
possible re-launch of the Maggi instant
noodles brand.

12. Loss To Nestle Due To Maggi
 From commanding 80% share of
India’s noodles market, (as
estimated by Nomura Securities
in May 2015) Maggi went down
to zero in just a month.
 50% of decline in the volume
growth of the Nestle India ready
to eat food products in 2015.
 Nestlé's share went down by up to
17%.

13.  Net profit for the year fell to Rs 563 crore, from
Rs1,185crore.
 Nestle took a hit of Rs 450 crore as it destroyed more than
30,000 tonnes of Maggi.
 During the ban, ITC Ltd.'s Yippee noodles and Wai Wai
noodles from Nepal’s CG Foods gained market share, filling
a gap in a Rs3,182-crore noodles market.

16. Nestlé India's Managing said,
“We are determined to resolve the Maggi
noodles issue in the best possible way.”
• Seeks suggestions from employees on
how to bring the brand back.
• May overhaul product packaging as it
seeks to mark a complete break from the
past.
• May change labelling to ensure it doesn’t
breach food safety norms.

17. • 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.
• Maggi was back in the market in
November 2015.
• Nestle India had rolled out a series of
short films hash
tagged #WeMissYouToo when it
waited for the test results.
• In January 2016, its reach touched 1.4
million retail shops across 27 states
and seven Union Territories.

18. Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016
Market
Share (by
volume
Nil 10% 33.3% 42% 48%
No. of
outlets(in
millions)
Nil 0.5 1 1.4 1.8
Nestle India had in 2017 crossed the Rs 10,000-crore sales mark.
 Maggi has attained over 60% market share.
Nestle India launched up to 25 products across various categories
in a day to fend off competition.

19. Conclusion
 Nestle recalled it’s Maggi inventory, so that this issue doesn’t
hamper the sales of other Nestle products.
 Nestle was not sure about Maggi’s meeting standards, that’s
why they took abrupt decisions.
 Ban on Maggi incurred standalone loss of 64.40 crore rupees.

20. • Nestle managed to claw its way back
by extensive marketing campaigns
and over two dozen product
launches.
• Maggi was once again India’s top
noodles brand with a 60% market
share.
• Nestle and FSSAI even joined hands
to set up a food safety institute at the
former’s research and development
centre in Manesar, Haryana.