- Maggi was founded in Switzerland in 1884 by Julius Maggi and is now sold in 130 countries. It was acquired by Nestle in 1947.
- In India, Maggi noodles were introduced in 1983 and became very popular, gaining an 80% market share, but sales were banned in 2015 when samples were found to contain lead and MSG beyond limits.
- To revive the brand, Nestle engaged customers on social media, launched a FAQ page to address concerns, and sold "welcome kits" through e-commerce to regain customer trust over 5 months of struggle, eventually managing to resume sales in India.
2. AGENDA
• Introduction
• History
• Mission and Vision
• Objectives
• Products and Services
• Reasons for loss making
• Revival strategy
• Conclusion
3. INTRODUCTION
(HISTORY)
• The MAGGI brand was founded by Swiss entrepreneur Julius Maggi in
Switzerland(1884)
• He first invented a pea and bean ready-to-use soup powder, to provide nutritious
and easy to prepare food for busy women who worked in factories and didn't
have time to prepare healthy meals
• The first MAGGI product was followed two years later with the invention of
ready-to-use soups
• Maggi was later acquired by Nestle in the year 1947
Julius Maggi
(9 October 1846 – 19 October 1912
4. INTRODUCTION
(HISTORY)
• Maggi is sold in 130 countries across the world and sells over a billion packets in
a day
• Maggi instant noodles first arrived in India in the year 1983
5. MISSION AND VISION
• The MAGGI brand’s mission is to be considered as the number one snacking option of India
combining the values of convenience, taste and health
• Its vision is to bring people closer by encouraging homemade cooking and for the family to spend
time together when preparing food at home
• They also aim to help mothers to prepare quick and easy meals for their family members
• Therefore, MAGGI emphasize that “Happiness is homemade” in 2010
• This slogan is useful to grasp consensus from the consumers, they started to eat at home because
MAGGI create a convenience platform to prepare easy and delicious foods
6. OBJECTIVES
• To promote Maggi noodles as a healthy ready to eat convenient food among
mothers and single working professionals
• To provide line extension by introducing Cup Noodles/Mug Noodles
• To upgrade the existing product features viz. packaging, ingredients, special
additives based on consumer feedback
8. REASONS FOR LOSS MAKING
• For three decades, it was a smooth sailing for Maggi; But a storm struck in 2014 when
a laboratory in Gorakhpur proved that samples of Maggi contained lead and MSG
(Monosodium Glutamate) much beyond the permissible limit
• Nestle India challenged this decision but the results by Kolkata central laboratory in
2015 confirmed the previous results
• On 3rd June 2015, the New Delhi Government banned the sale of Maggi in New Delhi
stores for 15 days due to these findings
• Consequently, several state governments began testing samples and banned the
product within a few days, Maggi was off the shelves
9. REASONS FOR LOSS MAKING
• Prior to the ban, Maggi owned nearly 80% of the market share in the instant
noodles segment. In the blink of an eye, its share jumped to zero
• The company was neither prepared for it nor did it have any immediate plan of
action to overcome it
• Maggi initially denied the allegations of hazardous composition of Maggi
• But when it was proven guilty for the second time, the customers were furious
• There were mass protests by Maggi lovers who were hurt by the severe breach of
trust. Maggi was losing not only its market share but also credibility
10. REVIVAL STRATEGY
• The company started engaging actively in social media and built a strong digital presence to
strengthen the Maggi brand
• Along with TV and print campaigns the company engaged with customers via Facebook and
Twitter
• Nestle used their twitter and facebook accounts to sort out the queries of their consumers about
the levels of MSG and Lead found in their product
• Nestle continued to keep its customers up to date on the investigation into the safety of Maggi
noodles on the official Maggi noodles Facebook page, Twitter and website, that extensive
testing revealed no excess lead in Maggi noodles
• They also launched a new page i.e. FAQ page on their official site.
11. REVIVAL STRATEGY
• Maggi had a tie up with a famous e-commerce website ‘Snapdeal.com’ and came
up with the idea of selling maggi welcome kit which was a box containing around
12 packets of Maggi before it was made available in stores
• This would give the customer an experience of exclusiveness
13. CONCLUSION
• The Nestle India could succeed in sustaining and regaining its lost image after the
rigorous struggle period of five months on its ethical issues of hyper usage of
MSG and lead in their product
• In spite of facing a huge loss, Nestle India managed the period of crisis properly
by regularly interacting with their consumers through social media
• The role played by the Maggi higher officials made it possible to get the approval
of its re-sale in India