RESEARCH PROJECT REPORT

ON
(Market Retention Strategies By Nestle: A Case
of Maggi )

SUBMITTED TO

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF

“MASTER OF BUSINESS ADMINISTRATION ”

Batch 2019-21
Session 2020-21

Submitted by: Supervised by:

Chhaya Chaudhary Dr. S M Fatah Uddin

Student of MBA “III” Semester Galgotias Institute of Management

Roll No.:1900940700032 & Technology, Greater Noida

 CERTIFICATE

This is to certify that the research project report entitled “Market Retention
Strategies By Nestle: A Case OF Maggi”, is submitted by Mr./Ms Chhaya
Chaudhary, student of MBA III Semester of, Galgotias Institute Of
Management & Technology, Greater Noida, under my supervision for the
partial fulfillment for the award of the degree of Master of Business
Administration, Session 2020-21, Batch 2019-21.

Place: Greater Noida

Date: ……………………
(Dr. S M Fatah Uddin)

Name & Signature of Supervisor

 DECLARATION

I Chhaya Chaudhary, student of MBA (III Semester) Session 2020-2021,

Batch 2019-2021 hereby declare that my work entitled
“Market Retention Strategies By Nestle: A Case Of Maggi”, is the outcome of
genuine efforts done by me under the able guidance of Mr./Ms./Dr. S M Fatah
Uddin and being submitted to, Galgotias Institute Of Management &
Technology, Greater Noida as research project report in partial fulfillment for
the award of the degree of Master of Business Administration {MBA}.

Place: Greater Noida

Date: …………………………

Name: Chhaya Chaudhary

Course: MBA (III Semester)

Roll No: 1900940700032
 ACKNOWLEDGEMENT
(Sample Format, for the purpose of giving an idea as how to prepare an
acknowledgement)

Firstly, I would like to express my sincere gratitude to Prof. Sana Iftekhar (Faculty
of Management) without whose blessings my summer training project work would
not be completed.

I also want to thank our HOD – Tariq Siddiqui for providing me encouragement,
motivation and moral support throughout the project work.

In addition to this I would also like to thank Dr. S M Fatah Uddin, Professor of
GIMT who supervised my project. Under his unrelated support and guidance, my
project has taken this shape.

I am equally indebted to my family and friends who always inspired and motivated
me to do something better throughout this project.

At last I would like to extend my sincere thanks to all the respondents to whom I
visited for giving their support and valuable information, which helps me in
completing my project work.

Name: Chhaya Chaudhary

Course: MBA (III Semester)

Roll No: 1900940700032
 TABLE OF CONTENTS
SERIAL NO. CONTENTS PAGE
NO.

1.0 About the Company 06

2.0 Introduction to the Topic, Importance & Objectives 20

3.0 Research Methodology 40

4.0 Data Analysis & Interpretations 41

5.0 Findings, Conclusions, Recommendations & Suggestions 65

CHAPTER 1
 ABOUT THE NESTLE

Nestlé S.A. is a Swiss transnational food and drink company headquartered in

Vevey, Vaud, Switzerland. It is the largest food company in the world measured by
revenues, and ranked #72 on the Fortune Global 500 in 2014.
Nestlé’s products include baby food, medical food, bottled water, breakfast cereals,
coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and
snacks. Twenty-nine of Nestlé’s brands have annual sales of over CHF1 billion
(about US$1.1 billion),including Nespresso, Nescafe, Kit Kat, Smarties, Nesquik,
Stouffer’s, Vittel, and Maggi. Nestlé has 447 factories, operates in 194 countries, and
employs around 339,000 people. It is one of the main shareholders of L’Oreal, the
world’s largest cosmetics company.
Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company,
established in 1866 by brothers George Page and Charles Page, and Farine Lactée
Henri Nestlé, founded in 1866 by Henri Nestlé (born Heinrich Nestle). The company
grew significantly during the First World War and again following the Second World
War, expanding its offerings beyond its early condensed milk and infant formula
products. The company has made a number of corporate acquisitions, including
Crosse & Blackwell in 1950, Findus in 1963, Libby's in 1971, Row tree Mackintosh in
1988, and Gerber in 2007.
Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent of the
Swiss Market Index. It has a secondary listing on Euro next. In 2011, Nestlé was
listed No. 1 in the Fortune Global 500 as the world’s most profitable corporation.
With a market capitalization of US$239.6 billion, Nestlé ranked No. 11 in the FT
Global 500 2014.

HISTORY
Henri Nestlé

Nestlé’s origins date back to 1866, when two separate Swiss enterprises were
founded that would later form the core of Nestlé. In the succeeding decades, the two
competing enterprises aggressively expanded their businesses throughout Europe
and the United States.

In August 1867 Charles (US consul in Switzerland) and George Page, two brothers
from Lee County, Illinois, USA, established the Anglo-Swiss Condensed Milk
Company in Cham, Switzerland. Their first British operation was opened at
Chippenham, Wiltshire, in 1873.

A 1915 advertisement for "Nestlé’s Food", an early infant formula

In September 1866 in Vevey, Henri Nestlé developed milk-based baby food, and
soon began marketing it. The following year saw Daniel Peter begin seven years of
work perfecting his invention, the milk chocolate manufacturing process. Nestlé was
the crucial co-operation that Peter needed to solve the problem of removing all the
water from the milk added to his chocolate and thus preventing the product from
developing mildew. Henri Nestlé retired in 1875 but the company, under new
ownership, retained his name as Society Farine Lactée Henri Nestlé.

In 1877 Anglo-Swiss added milk-based baby foods to their products; in the following
year, the Nestlé Company added condensed milk to their portfolio, which made the
firms direct and fierce rivals.
In 1879 Nestle merged with milk chocolate inventor Daniel Peter.
In 1904 François-Louis Cailler, Charles Amédée Kohler, Daniel Peter and Henri
Nestlé participated in the creation and development of Swiss chocolate, marketing
the first chocolate - milk Nestlé.

In 1905 the companies merged to become the Nestlé and Anglo-Swiss Condensed
Milk Company, retaining that name until 1947, when the name ‘Nestlé Alimentana
SA’ was taken as a result of the acquisition of Fabrique de Products Maggi SA
(founded 1884) and its holding company, Alimentana SA, of Kempttal, Switzerland.
Maggi was a major manufacturer of soup mixes and related foodstuffs. The
company’s current name was adopted in 1977. By the early 1900s, the company
was operating factories in the United States, the United Kingdom, Germany, and
Spain. The First World War created demand for dairy products in the form of
government contracts, and, by the end of the war, Nestlé’s production had more than
doubled.

Nestlé felt the effects of the Second World War immediately. Profits dropped from
US$20 million in 1938, to US$6 million in 1939. Factories were established in
developing countries, particularly in Latin America. Ironically, the war helped with the
introduction of the company’s newest product, Nescafe ("Nestlé’s Coffee"), which
became a staple drink of the US military. Nestlé’s production and sales rose in the
wartime economy.

The logo that Nestlé used until 1966

After the war, government contracts dried up, and consumers switched back to fresh
milk. However, Nestlé’s management responded quickly, streamlining operations and
reducing debt. The 1920s saw Nestlé’s first expansion into new products, with
chocolate-manufacture becoming the company’s second most important activity.
Louis Dapples was CEO till 1937, when succeeded by Édouard Muller till his death
in 1948.
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth
accelerated and numerous companies were acquired. In 1947 Nestlé merged with
Maggi, a manufacturer of seasonings and soups. Crosse & Blackwell followed in
1950, as did Findus (1963), Libby’s (1971) and Stouffer’s (1973). Diversification
came with a shareholding in L’Oreal in 1974. In 1977, Nestlé made its second
venture outside the food industry, by acquiring Alcon Laboratories Inc.

In the 1980s, Nestlé’s improved bottom line which allowed the company to launch a
new round of acquisitions. Carnation was acquired for $3 billion in 1984 and brought
the evaporated milk brand, as well as Coffee-Mate and Friskies to Nestlé. The
confectionery company Rowntree Mackintosh was acquired in 1988 for $4.5 billion,
which brought brands such as Kit Kat, Smarties and Aero.

The Brazilian president, Lula da Silva, inaugurates a factory in feira de Santana (Bahia),

February 2007.

The first half of the 1990s proved to be favorable for Nestlé. Trade barriers crumbled,
and world markets developed into more or less integrated trading areas. Since 1996,
there have been various acquisitions, including San Pellegrino (1997), Spillers Pet
foods (1998), and Ralston Purina (2002). There were two major acquisitions in North
America, both in 2002 – in June, Nestlé merged its US ice cream business into
Dreyer's, and in August a US$2.6 billion acquisition was announced of Chef
America, the creator of Hot Pockets. In the same time-frame, Nestlé entered in a
joint bid with Cadbury and came close to purchasing the iconic American company
Hershey's, one of its fiercest confectionery competitors, but the deal eventually fell
through. Another recent purchase included the Jenny Craig weight-loss program, for
US$600 million.

Nestlé sold the Jenny Craig business unit to North Castle Partners in 2013.

In December 2005, Nestlé bought the Greek company Delta Ice Cream for
€240 million. In January 2006, it took full ownership of Dreyer’s, thus becoming the
world’s largest ice cream maker, with a 17.5% market share. In November 2006,
Nestlé purchased the Medical Nutrition division of Novartis Pharmaceutical for
US$2.5 billion, also acquiring, in 2007, the milk-flavoring product known as Oval tine.

In April 2007, returning to its roots, Nestlé bought US baby-food manufacturer

Gerber for US$5.5 billion. In December 2007, Nestlé entered into a strategic
partnership with a Belgian chocolate maker, Pierre Marcolini.
Since 2010, Nestle has been working to transform itself into a nutrition, health and
wellness company in an effort to combat declining confectionery sales and the threat
of expanding government regulation of such foods. This effort is being led through
the Nestlé Institute of Health Sciences under the direction of Ed Baetge. The Institute
aims to develop “a new industry between food and pharmaceuticals” by creating
foodstuffs with preventative and corrective health properties that would replace
pharmaceutical drugs from pill bottles. The Health Science branch has already
produced several products, such as drinks and protein shakes meant to combat
malnutrition, diabetes, digestive health, obesity and other diseases.

In July 2011, Nestlé SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for
about US$1.7 billion. On 23 April 2012, Nestlé agreed to acquire Pfizer Inc.'s
infant-nutrition, formerly Wyeth Nutrition, unit for US$11.9 billion, topping a joint bid
from Danone and Mead Johnson.

In February 2013, Nestlé Health Science bought Pam lab, which makes medical
foods based on L-methylfolate targeting depression, diabetes and memory loss.

In February 2014, Nestlé sold its Power Bar sports nutrition business to Post
Holdings, Inc. Later, in November 2014, Nestlé announced that it was exploring
strategic options for its frozen food subsidiary, Davigel.

In recent years, Nestlé Health Science has made several acquisitions. It acquired
Vitaflo, which makes clinical nutritional products for people with genetic disorders;
CM&D Pharma Ltd., a company that specializes in the development of products for
patients with chronic conditions like kidney disease; and Prometheus Laboratories, a
firm specializing in treatments for gastrointestinal diseases and cancer. It also holds
a minority stake in Vital Foods, a New Zealand-based company that develops
kiwifruit-based solutions for gastrointestinal conditions.

In December 2014, Nestlé announced that it was opening 10 skin care research
centres worldwide, deepening its investment in a faster-growing market for
healthcare products. That year, Nestlé spend about $350 million on dermatology
research and development. The first of the research hubs, Nestlé Skin Health
Investigation, Education and Longevity Development (SHIELD) centre’s, will open
mid 2015 in New York, followed by Hong Kong and São Paulo, and later others in
North America, Asia and Europe. The initiative is being launched in partnership with
the Global Coalition on Aging (GCOA), a consortium that includes companies such
as Intel and Bank of America.

Société des Products Nestlé S.A.

Good Food, Good Life

Aerial view of Nestlé's corporate headquarters building in
Vevey, Vaud, Switzerland

Type Société Anonyme

SIX: NESN OTC Pink: NSRGY
Traded as BSE: 500790
NSE: NESTLEIND
Industry Food processing
Founded 1866; 150 years ago
Henri Nestlé, Charles Page,
Founder
George Page
Headquarters Vevey, Vaud, Switzerland
Area served Worldwide
Peter Brabeck-Letmathe
(Chairman)
Key people
Paul Bulcke (CEO)
François-Xavier Roger (CFO)
Baby food, coffee, dairy
products, breakfast cereals,
Products
confectionery, bottled water, ice
cream, pet foods
Revenue CHF 88.8 billion (2015)
Operating
CHF 13.4 billion (2015)
income
Profit CHF 9.0 billion (2015)
Total assets CHF 133.45 billion (2014)
Total equity CHF 71.88 billion (2014)
 Number of
335,000 (2015)
employees
Website Official website

The Nestlé logo evolution

Henri Nestlé was one of the first Swiss manufacturers to build
up a brand with the help of a logo. The original Nestlé
trademark was based on his family's coat of arms, which
featured a single bird sitting on a nest. This was a reference to
the family name, which means ‘nest’ in German. Henri Nestlé
adapted the coat of arms by adding three young birds being
fed by a mother, to create a visual link between his name and
his company’s infant cereal products. He began using the
image as a trademark in 1868. Today, the familiar bird’s nest
logo continues to be used on Nestlé products worldwide, in a
modified form. Take a look at how it has evolved over the
years.
Our founder Henri Nestlé

Henri Nestlé’s sense of scientific innovation, combined with an instinct for

marketing and a global ambition continues to shape and drive the company
today.

A portrait of Henri Nestlé (1867)

Henri Nestlé began as a pharmacist’s assistant but when he sold the company
which bore his name at the age of 60 it was already an international success
selling his famous milk-based baby food – Farine Lactée - across five
continents.
The Nestlé trademark in 1868
Henri Nestlé recognized the importance of branding from the very beginning. His
logo, featuring small birds being fed in a nest on an oak branch, was based on his
family’s crest. Although it has been updated over the years, it remains the
recognizable and distinctive logo of Nestlé today.

Vevey in 1870
Henri Nestlé began his business in the small Swiss lakeside town of Vevey, using
milk from the local area. Vevey is still where the global headquarters of Nestlé
remains today.

Vevey’s Pharmacie Centrale

Henri Nestlé initially worked as a pharmacist’s assistant in Vevey between 1839 and
1843. His training in chemistry and his scientific background shaped his attitude and
his future approach to business. An entrepreneur and constant innovator, he
experimented with the production of everything from lemonade to cement before
inventing the Farine Lactée formula that would spell his fortune.

The dairy in Vevey (1890)

Originally, Henri Nestlé bought the milk needed for his baby food each morning but
by the summer of 1869, two years after launching the Farine Lactée this was no
longer practical, so he to buy his supplies from a milk collection centre in a small
village near Vevey, from where it was delivered to the factory.

Advert for Nestlé’s children’s milk

Although he was originally German, Henri Nestlé - and his successors - used the
reputation for Switzerland’s high quality milk as part of the product’s marketing
strategy from the beginning. Nestlé remains one of the world’s largest purchasers of
milk, as well as commodities like cocoa and coffee.
Supporting infant nutrition
Henri Nestlé also realized that in order to change perceptions about his brand new
product he had to convince the scientific community of its merits so he produced a
series of pamphlets, distributed to doctors and pharmacists, which explained the
merits of his product
An advert from 1897
His understanding of the importance of creating a brand was echoed in advertising
campaigns of those who took over the company after he sold it, creating adverts that
remain beautiful as well as functional.

An advert from 1900

By 1875, Nestlé’s products were sold everywhere from Indonesia to Egypt, and from
the US to Argentina. This global ambition to make products for consumers the world
over has continued.

COMPETITORS OF NESTLE :

Engro Foods Pakistan

Major Product line: Olpers milk, Olpers Cream, Olwell, Tarang Tea whitener,
Tarkka Ghee

Haleeb Foods

Major Product line: Bread, Snacks, Dessert and Meal

Shezan Foods Pakistan

Major Product line: Food product, Jam Jellies and Marmalades, Tomato
ketchup, Sauces and Pickles, Fruit juices syrups and squashes

Brands Of Nestle:

Milk Products and Nutrition

MAGGI HotHeads
Exciting, never before flavors in your favorite Noodles

Beverages
Prepared Dishes and Cooking Aids

Chocolates and Confectionery

CHAPTER 2

Objectives And Goals Of Nestle

Marketing objectives are compatible with the overall corporate objectives of nestle.
Company’s objective is to be the world’s largest and best branded food manufacturer
while insuring that nestle name is synonymous with the products of the highest
quality.

Its chief objectives are:

To achieve compatibility with international voluntary standard on environmental
management systems.

To build mutual trust with consumers, governmental authorities and business

partners.

To ensure continuous improvement of nestles environmental performance.

Conservation of natural resources and minimization of waste.

To establish the benchmark for good business practice.

Employing new technologies and processing.

Measuring the cost and benefits to business of its activities.

Monitor progress.

Audit results.

Management Of Nestle
NESTLÉ LEADERS: Peter Brabeck-Letmathe, left, Nestlé Chairman and Paul
Bulcke, Nestlé Chief Executive Officer (CEO)

Nestlé has a Board of Directors, led by our Chairman Peter Brabeck-Letmathe, who
was the former Nestlé CEO. Full details of each member and the committees that
they operate within can be found in our Board of Directors section.

The day-to-day management of the Nestlé business is taken care of by our

Executive Board. The 14 designated Board Members manage diverse parts of the
global business. A full curriculum vitae of each member can be found in the
Executive Board section.

The Nestlé Group is managed by geographies - Zones EMENA (Europe, Middle East
and North Africa), Americas and Asia/Oceania/sub-Saharan Africa - for most of the
food and beverage business, with the exceptions of our globally managed
businesses, which include Nestlé Waters, Nestlé Nutrition, Nespresso, Nestlé
Professional, Nestlé Health Science and Nestlé Skin Health. We also have joint
ventures such as Cereal Partners Worldwide and Beverage Partners Worldwide.

Mission And Vision Of Nestle

Our Mission Statement

Nestlé is the world's leading nutrition, health and Wellness Company. Our mission of
"Good Food, Good Life" is to provide consumers with the best tasting, most
nutritious choices in a wide range of food and beverage categories and eating
occasions, from morning to night.
 

Our vision and values

To be a leading, competitive, Nutrition, Health and Wellness Company delivering

improved shareholder value by being a preferred corporate citizen preferred
employer preferred supplier selling preferred products.

Quality and Safety

Our commitment to consumers

Quality and Safety for our consumers is Nestlé’s top priority. This applies to our
entire portfolio, from foods and beverages to all our systems and services. Quality
assurance and product safety is one of Nestlé’s 10 Corporate Business Principles
which form the foundation of all we do.
Nestlé Quality Policy

Our actions to ensure quality and food safety are guided by the company’s Quality
Policy which describes our commitment to

● Build trust by offering products and services that match consumer expectation
and preference
● Comply with all internal and external food safety, regulatory and quality
requirements
● Gain a zero-defect, no-waste attitude by everyone in our company
● Make quality a group-wide objective

Nestlé Quality Management System

Our Quality Management System is the platform that we use globally to guarantee
food safety, compliance with quality standards and to create value for consumers.
Our internal Quality Management System is audited and verified by independent
certification bodies to prove conformity to internal standards, ISO norms, laws and
regulatory requirements.

From farm to fork

Our Quality Management System starts on farms. We have a long history of working
together with farmers in rural communities to help them improve the quality of their
produce and adopt environmentally sustainable farming practices. The Quality
Management System not only ensures our ongoing access to high quality raw
materials. It also enables farmers to protect or even increase their income. Often the
standard of living of entire rural communities is raised as a result. The system helps
address key global environmental and social issues.

Quality by design

Quality is built in during product development according to the requirements of the

consumers and following all food safety and regulatory requirements. Nestlé’s R&D
network applies in this “Quality by design” to all of our products.

Good Manufacturing Practices

We apply internationally recognized Good Manufacturing Practices (GMP) to ensure

quality and food safety. GMPcovers all aspects of manufacturing, including standard

operating procedures, people management and training, equipment maintenance,

and handling of materials.

Hazard Analysis and Critical Control Points

We apply the internationally recognized HACCP (Hazard Analysis and Critical

Control Point) system to ensure food safety. This preventive and science based
system identifies, evaluates, and controls hazards that are significant for food safety.
It covers the entire food production process from raw materials to distribution and
consumption. Our HACCP plans and systems are verified by external certification
bodies against the international ISO 22’000:2005/ISO 22002-1 standards.

Consumer Use

Our products carry information to ensure that they are used safely with the highest
level of quality for the consumer.

Consumer Services

Our worldwide consumer services organization ensures that we can immediately

respond to any consumer inquiry, question or concern. The labels of all Nestle
products invite our consumer to talk to Nestle, and provide our address or telephone
numbers.

R&D

“Nestle Research provides solutions for good-tasting foods and beverages, as well
as services, that brings nutrition, health and wellness to consumers.”

Investors

“Our objective is to be recognized as the leader in Nutrition, Health & Wellness and
as the reference for financial performance, trusted by all stakeholders.” Paul Bulcke,
Chief Executive.

Corporate Business Principles

Since the Company was founded, Nestlé’s business practices have been governed
by integrity, honesty, fair dealing and full compliance with all applicable laws. Nestlé
employees worldwide have upheld and lived this commitment in their every day
responsibilities ever since, and Nestlé’s reputation remains one of the Company’s
most important assets today. The Nestlé Corporate Business Principles prescribe
certain values and principles which Nestlé has committed to worldwide. This Code of
Business Conduct specifies and helps the continued implementation of the
Corporate Business Principles by establishing certain nonnegotiable minimum
standards of behavior in key areas. The nature of the Code is not meant to cover all
possible situations that may occur.

WHO Code Statements

Nestlé seeks to promote safe and adequate nutrition for infants by encouraging and
supporting breast-feeding as the best start in life and by manufacturing high quality
breast-milk substitutes for use when a safe alternative to breast-milk is needed, i. e.
when mother’s milk is not available to the infant or when a specially adapted formula
is needed. Nestlé has publicly stated its support for the International Code of
Marketing of Breast-milk Substitutes and subsequent relevant WHA resolutions,
which aims 1) to protect and promote breast-feeding, and 2) to ensure the proper
use of breast-milk substitutes when these are needed. The Code recognizes the
importance of breast-feeding while acknowledging that there is a legitimate market
for breast-milk substitutes when breast-feeding is not possible. Nestlé acknowledges
that, independently of any other measures taken by governments to implement the
Code, Nestlé is responsible for monitoring our marketing practices according to the
principles and aim of the Code, and for taking steps to ensure that our conduct at
every level conforms to the Nestlé Policy and Instructions in this regard.

Nestlé receives top environment award

May 23, 2011

COMMITTED TO SUSTAINABLE DEVELOPMENT:
L-R: Terry Yosie; WEC President and CEO; Award presenter Professor Jim Schorr,
of the Owen Graduate School of Management, Vanderbilt University; Nestlé CEO
Paul Bulcke; Andrea Thomas, Senior Vice President Sustainability, of Walmart; Jeff
Seabright, WEC Chairman and Vice President Environment & Water, of Coca-Cola.

Nestlé was last week crowned the winner of the 27th World Environment Center
(WEC) Gold Medal award for its commitment to environmental sustainability.

Paul Bulcke, Chief Executive Officer of Nestlé, accepted the award “on behalf of our
Chairman and the 280,000 employees that make Nestlé today”.

Speaking at the presentation ceremony on May 19 in Washington D.C. in the United

States, Mr. Bulcke also stressed that “this award is a mandate, an obligation and
motivation to do even better so that also future generations can enjoy Good Food
and a Good Life with Nestlé.”

The WEC Gold Medal Award is presented annually to a global company that has
demonstrated a unique example of sustainability in business practice and is one of
the most prestigious forms of recognition of a global company's ongoing commitment
to the practice of sustainable development. Nestlé was originally announced as the
winner in January, ahead of this month's official prize ceremony.

Environmental efficiency

The Company was praised for its accomplishments in international corporate

sustainable development, including its environmental practices that are driven by its
Creating Shared Value initiative. This is Nestlé's way of doing business that focuses
on specific areas of its core business activities; namely water, nutrition, and rural
development; where value is created both for society and the Company. Explaining
Nestlé’s environmental efficiency, Mr Bulcke continued: “Our commitment to
sustainable business practice is long-term in its perspective, comprehensive in its
scope, and meticulously managed in its approach. Sustainable management has
given us the solid base for our long-term business development; by consciously
identifying areas of focus where shareholders’ and society’s interest strongly
intersect, we can additionally optimize value creation for both parties. We are
therefore honored and motivated to receive this distinguished award.”

MANAGING WATER IN COMMUNITIES:

Nestlé's partnership with the International Water Management Institute is helping to

map water use in the Punjab region. He added: “In committing to long-term
sustainable practices which are integral to our business, for example, we have built
approximately 290 water treatment plants to date – significantly in developing
countries where national and municipal waste water treatment infrastructure does
not exist, or does not yet meet the international environmental standards that Nestlé
supports. In more recent years, we have also pioneered co-generation technology in
our factories.” Nestlé has identified water as its major environmental challenge, both
in its own direct operations and in its value chain. It has set a good example by
reducing water consumption over the past decade by 33%, while increasing its food
and beverage production volume by 63%, or a reduction of 59% per kilo of product.
In the same time period, the Company has cut the quantity of water discharged from
its factories into the ecosystem – after treatment and removal of pollutants – by 42%,
or 65% per kilo of product.

By setting its sights on reducing consumption on a comparable basis by a further

10-15% over the next five years, Nestlé has continued to roll out a number of
water-saving projects and initiatives to combat water usage.

Water management

As part of its efforts in many rural areas around the world to improve water
management in agriculture, Nestlé last year completed a study in the Indian town of
Mega, in alliance with the International Water Management Institute (IWMI). This
focused on the water footprint of milk and other local crops in the Mega Punjab
region, where the study results will help local authorities and stakeholder to improve
water efficiency and maximize the economic benefits from scarce resources.

And a number of projects which progressed in 2009 look set to increase the
Company’s overall proportion of energy derived from renewable resources.

RECYCLING COFFEE GROUNDS AS FUEL

Renewable fuel from spent coffee grounds provides 13% of the total energy required
at Bugalagrande factory in Colombia. For example, at the Bugalagrande factory in
Colombia, the installation of Nestlé’s latest spent coffee grounds fuelled boiler allows
the recovery of energy from this biomass. This renewable fuel provides 13% of the
total energy required in the factory and has 95% lower CO2 emissions than the fossil
fuel it replaces. Nestlé has been implementing this type of technology for the last 30
years, and of its 27 coffee factories where spent grounds are a by-product – 21 are
equipped with such technology. In addition, Nestlé has also boosted its involvement
with external bodies to further strengthen its leadership on environmental
sustainability. In 2009, Nestlé led a joint project with the International Finance
Corporation (IFC), McKinsey and several other companies, to produce the “Charting
our Water Future: a new economic framework to decision making” report. Such
attainments were recognized by the Gold Medal jury, which was chaired by Dr Joel
Abrams, Professor Emeritus of the University of Pittsburgh. As an independent entity
of the WEC and its programmes, it is composed of international leaders from
academia, government, non-governmental organizations and retired industry
professionals.

Nestlé achievements

● Since the early 1990s, Nestlé has reduced packaging by more than 19,500
tonnes in the UK & Ireland, equal to the weight of 2,500 average African
elephants. We constantly look at ways of further reducing the amount of
packaging used.
● Packaging is regularly assessed to find ways of reducing weight and volume
as much as possible as well as improving the recyclability and compatibility of
packaging with existing waste management schemes.
● As a founding member of the UK industry packaging waste compliance
scheme, VALPAK, Nestlé has met its obligation to recover and recycle more
than 30,000 tons in 2007.
● Nestlé UK reduced the height of large Quality Street tins to save more than
200 tons of steel per year, equal to the weight of 25 average African
elephants. The weight of small round Quality Street tins was also reduced,
saving 37 tons of steel per year.
Nestlé’s Annual Report 2011 Unveils the Company’s
Achievements

Anna Sanina Mar 15, 2012

Nestlé has introduced its Annual Report 2011 that encompasses 48-pages. The
report includes the company’s achievements in 2011 and unveils its future plans. 

Nestlé stated that its core value has always been the short term performance but the
company remained focused on the longer term. In 2011, Nestlé successfully
delivered its Model of financial performance. The main initiatives included the
creation of Nestlé Health Science, two major partnerships in China, and significant
investments in Russia, India and many African and Latin American countries. Nestlé
Health Science was launched on January 1, 2011 as a separate company that was
aimed to create a market between food and pharmaceuticals.  In addition, the Nestlé
Institute of Health Sciences was created to develop biomedical solutions for nutrition.
 In its first year Nestlé Health Science made three investments including the
acquisition of Prometheus Laboratories Inc. and investments into the products
targeting specific disorders and diseases.

Regarding development on emerging markets, the company signed two partnerships

in China acquiring 60% of both Hsu Fu Chi and Yinlu, two established companies
that make a good contribution to Nestlé’s portfolio. The company also made
investments into Chocolate in China and India, Culinary in India, China and Africa,
Milk and Infant Nutrition in Indonesia, Coffee in Africa, Russia and Thailand,
Breakfast cereals in Malaysia and Turkey and Pet Care in Russia and Hungary.
Among other company’s achievements in 2011 are: the connection with small
businesses in Europe and the improvement of the Nutritional Compass

“We recognize that if we are going to build businesses that are successful today and
sustainable tomorrow, we need to invest upstream and down to create value for our
partners,” said Paul Bulcke, Nestlé Chief Executive Officer.

Nestle outlines achievements, challenges in 2015

Creating Shared Value report
By Carolyn Heneghan June 7, 2016
Dive Brief:

● Nestle USA released its second annual Creating Shared Value (CSV) report,
which details the company's goals and achievements in 2015 concerning
nutrition, health and wellness; environmental sustainability; water
management; rural development and responsible sourcing; and social impact.
● In the nutrition and wellness space, Nestle reported reformulating 1,222 food
and pet products to meet objectives such as reducing sodium, sugar, trans fat,
and artificial colors and flavors and increasing nutrient content.
● Nestle also reported achieving zero waste to landfill in 35 U.S. factories,
which is 40% of the company's target of 100% by 2020.

Dive Insight:

The report highlights several initiatives Nestle has taken to improve sustainability
programs within the company's U.S. operations. With a No. 2 ranking in Oxfam's
recent Behind the Brands sustainability report card and the achievements outlined in
this report, Nestle serves as an example manufacturers can follow when determining
ways to make their supply chains more sustainable and how to best report initiatives
and progress.

However, the CSV and its companion reports also point out struggles leaders face in
achieving and maintaining sustainability throughout vast global supply chains.
According to Nestle's report, 89% of its audited suppliers were compliant with the
Nestle Responsible Sourcing Program in 2015. However, in its companion report,
Nestle said the percentage of purchased volume fully compliant with the Nestle
Supplier Code fell to 82% in 2015 from 95% in 2014.

The reason for the drop is unclear. But with a portfolio and supply chain as large as
Nestle's, the company demonstrates to other global manufacturers the importance of
setting clear sustainability goals and outlining concrete plans for achieving them.
Without plans and contingencies, massive changes in commodity markets, global
economies, and other external factors can derail sustainability efforts.
Nestle has also struggled with bottling issues, particularly in California, where its
permit to bottle water pumped from San Bernardino National Forest has been
contested. The permit is still in effect but has not been renewed since 1988.

The U.S. Forest Service launched its investigation into the environmental impact of
Nestle's pipeline in January after being sued in October by environmental groups for
allowing Nestle to continue pumping water despite its questioned permit status. Last
month, Nestle Waters North America submitted a 79-page document detailing its
concerns about the Forest Service's proposal regarding the NWNA's permit renewal.
The company said the proposal would interfere with California state laws and
long-established water rights.

The outcome of this permit is critical for Nestle. Bottled water is a major business for
the company and was among the fastest-growing beverage segments in 2015,
according to the Beverage Marketing Corporation. Achieving a fast resolution here
will be significant for Nestle's business, reputation, and sustainability efforts alike.

Public policy and advocacy

Companies are playing an increasingly active role in society, including in the

development of laws, rules and policy documents. Today, businesses (including
Nestlé) are often expected and asked to participate in such activities. Providing our
expertise to assist more informed decision-making, in a collaborative environment
with governments, authorities and other relevant bodies, is therefore an important
responsibility. We have procedures in place that support consistent transparent
interaction, and ensure that engagement is carried out professionally and with high
standards. Our policies, documents and reports are publicly available online, and we
also publish our positions on key issues on our website (Ask Nestlé).

Committed to transparency

Transparency underpins our engagement process. It provides the basis for deeper
dialogue, which in turn builds knowledge and understanding. We outline our
expectations with employees through the Nestlé Policy on transparent interaction
with authorities and organizations, and we provide training for all country-level Nestlé
staff, including Human Resources, Legal, Operations and Public Affairs. In Europe,
Nestlé is listed in the European Union Transparency Register, which gives everyone
direct access to information about who is engaging with decision-makers. We follow
the register’s code of conduct. In the USA, we file quarterly public reports outlining
our engagement activities with the US Congress. We also operate an online external
grievance system called ‘Tell Us’, which enables stakeholders to raise their concerns
directly.

Nestlé’s industry affairs guidelines

Due to the size and diversity of our business, we are involved in many industry
organizations and trade associations at all levels. These efforts require expertise,
resources, coordination and alignment across our business. Last year, we
implemented internal guidelines to help markets manage these relationships, in
alignment with our corporate strategy. They contain a structured approach and
recommendations for participating in industry and trade associations, helping our
employees to:

● Understand the association landscape;

● Set priorities and select the relevant industry associations; and
● Develop rules of engagement with industry associations.

There are two notable instances where the guidelines have already helped us. In
Latin America, the consumer goods industry is seeking to develop an industry vision
for the region. The vision articulated is to enhance the industry standards and
practices, enable sustainable value chain efficiency, including a social agenda, and
lead positive collective action and outcomes for consumers and local communities.
The guidelines have helped our Latin American markets participate with ‘one voice’
in this regional agenda. The guidelines also encourage effective priority-setting. At
Nestlé USA, a new process has been introduced to prepare a CEO briefing paper for
meetings with organizations such as the Grocery Manufacturers Association. This
allows the local team to collate relevant matters, consider them and put them forward
together, ensuring nothing is missed.
 Introduction To Maggi

Nestle leads the value sale of noodles in India with a market share of 79.3%. A
testament to nestle domination of the sales of plain noodles it the fact that for its
instant noodles brand Maggie, among all its global offices, India accounts for the
highest level volume sale of the company.

This marketing plan analyses the current marketing mix o Maggie noodles, studies
the popularity of the two new health variants Vegetable Atta and Dal Atta Noodles
and make suggestions with regard to introducing a new brand “Cup O Maggie” in the
cup needles segment. Various tools like surveys and secondary source of
information have been utilized for the purpose of this analysis.

Maggi is an over 100-year-old nestle brand of instant soups, stocks, bouillons,

ketchup, sauces, seasoning and instant noodles. It quickly becomes a pioneer o
industrial food production, aiming at the improvement of the nutrition of worker
families.

Over time the scope of MAGGI has been extended from a predominantly dehydrate
cooking aid brand towards a general savory food brand including many types of
ready meal and also frozen food. This is in line with the people all over the world are
cooking less and less from scratch.

The company originated in Switzerland in 1885, when Julius Maggi took over his
father's mill. He quickly became a pioneer of industrial food production, aiming to
improve the nutritional intake of worker families. Maggi was the first to bring
protein-rich legume meals to the market, and followed up with a ready-made soup
based on legume meals in 1886. In 1897, Julius Maggi founded the company Maggi
GmbH in Singen, Germany.

In 1947, following several changes in ownership and corporate structure, Maggi's

holding company merged with the Nestlé company to form Nestlé-Alimentana S.A.,
currently known in its francophone home base as Nestlé S.A.
Products

Maggi Seasoning sauce (replica of a historic bottle)

A bottle of Maggi sauce in 2006

Bouillon cubes
Maggi masala noodles

Cube

The bouillon cube or Maggi soup is a meat substitute product that was introduced in
1908.

In West Africa and parts of the Middle East, Maggi cubes are an integral part of the
local cuisine. In Haiti and throughout Latin America, Maggi products, especially
bouillon cubes, are widely sold with some repackaging to reflect local terminology. In
the German, Dutch, and Danish languages, lovage has come to be known as Maggi
herb (Ger. maggikraut, Du. maggikruid or maggiplant, Da. maggiurt), because it
tastes similar to Maggi sauce, although lovage is not present in the sauce.

Seasoning sauce

In Australia, China, Taiwan, Vietnam, Thailand, the Philippines, Singapore, Pakistan,

Mexico, Indonesia, Malaysia, Brunei, German-speaking countries, the Netherlands,
the Czech Republic, Slovenia, Poland and France, "Maggi" is still synonymous with
Maggi-Würze (Maggi seasoning sauce), a dark, soy sauce-type hydrolyzed
vegetable protein-based condiment sauce. In Spain and Mexico, it is sold under the
name Jugo Maggi.
Noodles

Maggi instant noodles are popular in India and Malaysia. Nestle has 39% market
share in Malaysia, where "Maggi" is synonymous with instant noodles, and had 90%
market share in India prior to a nationwide ban by the Food Safety and Standards
Authority of India. Following the ban, the market share was reduced to 53% in India.
In Malaysia, fried noodles made from Maggi noodles are called Maggi goring.

In June 2015, tests in India found high amounts of lead in Maggi noodles. The Food
Safety and Standards Authority of India ordered a national recall for all 9 variants of
Maggi Instant Noodles and Oats Masala Noodles.

In India, Maggi noodles carry a green dot, meaning they are specifically formulated
to serve vegetarians. His special formulation is not available in other countries,
unless imported from India.

Dehydrated soup

Like other dehydrated soup mixes, Maggi Onion Soup mix is often combined with
reduced cream to create a French onion dip.

Maggi Noodles safety concerns in India

In May 2015, Food Safety Regulators from Barabanki, a state of Uttar Pradesh, India
reported that samples of Maggi 2 Minute Noodles had unexpectedly high levels of
monosodium glutamate, as well as up to 17 times the permissible limit of lead. This
finding led to multiple market withdrawals and investigations in India and beyond.
 CHAPTER 3

Research Methodology

Secondary data:
My topic is ‘how nestles maggi regained its market again’. As we all know maggi is
banned for few month because of high level of lead in maggi which is ‘unsafe and
hazardous’ for humans health.

Due to banned maggi lost his share value in market maggi have 90% share in
market before the controversy but after controversy maggi have 51% shares in
market.

Now Nestle re-launch his lovable product ‘maggi’ in market again after 5 months and
within few time maggi regain its share value 51% to 57%.

Data collection:
My data is collected from internet, magazines, newspaper and from catalogues and
also from various internet sites.
 CHAPTER 4
Data Analysis And Intarpretations
Maggi is having the best channel, as the product is easily available at almost each
and every stores. Next comes the top ramen which is also established in the market
from long time but brands like knnor, sunfeast, horlicks is not available at stores & if
its available it’s not been sold. Pricing has been a very important factor when it’s
come to the sale of maggi product and retailers emphasize on the fact that customer
want a good price as there are competitors coming in the market.

Television is the medium from which people are aware and enlightened about the
brand.

It’s also being observed that maggi has the best mind-share among all the brand that
were researched in the project. Also, apart from it being a ready-to-eat product with
fun, maggi as a brand is perceived as a family product amongst the other brand as
were researched.
Timeline (India)

● June 3, 2015 - The New Delhi Government banned the sale of Maggi in New
Delhi stores for 15 days due to these findings First Information Reports (FIRs)
against Bollywood Maggi Brand Ambassadors Amitabh Bachchan, Madhuri
Dixit, & Preity Zinta were lodged by Sudhir Kumar Ojha, a lawyer, at
Muzaffarpur district court, asking the authorities to arrest them if required. He
complained that he fell sick after eating Maggi which he had purchased from a
shop at Lenin Chowk on 30 May.
● June 4, 2015 - The Gujarat FDA banned the noodles for 30 days after 27 out
of 39 samples were detected with objectionable levels of metallic lead, among
other things, and Assam banned sale, distribution, and storage of Maggi's
"extra delicious chicken noodles" variety for 30 days after tests carried out at
the state public health laboratory concluded that the particular variety
contained added monosodium glutamate and an excessively high level of
lead. On June 4, 2015 the government of Tamil Nadu banned Maggi foods
due to high level of lead and other components.
● June 5, 2015 - The Andhra Pradesh Government also banned Maggi foods
because of high level of lead.
● Also on June 5, 2015, the Food Safety and Standards Authority of India
(FSSAI) ordered a recall of all nine approved variants of Maggi instant
noodles and oats masala noodles, suggesting that they were unsafe and
hazardous for human consumption. On the same day, the Food Standards
Agency of the United Kingdom launched an investigation into the level of lead
in Maggi noodles. June 6, 2015 - The Central Government of India banned
nationwide sales of Maggi noodles for an indefinite period.
● June 26, 2015 - During a press meeting, the Minister for Health and Family
Welfare of Karnataka, U. T. Khader, said that Maggi foods would not be
banned.
● July, 2015 - The Bombay High Court allowed the export of Maggi while the
ban in India remained.
 ● August 2015 - Tests performed by the US health regulator FDA showed no
dangerous lead levels in the products. On 13 August 2015, the nationwide
ban was struck down by the Bombay high court The court stated that proper
procedure was not followed in issuing the ban and called into question the test
results, as the samples were not tested at authorized laboratories accredited
to the National Accreditation Board for Testing and Calibration Laboratories
(NABL).
● Additional market bans
● Some of India's biggest retailers (including Future Group's Big Bazaar,
Easyday, and Nilgiris) imposed a nationwide ban on Maggi. In addition,
multiple state authorities in India found an unacceptable high amount of lead,
leading to bans in more than 5 other states.
● Nepal indefinitely banned Maggi over concerns about the lead levels in the
product. Maggi noodles were subsequently withdrawn from the market of five
African nations: Kenya, Uganda, Tanzania, Rwanda and South Sudan.

Testing controversies

● Monosodium glutamate (MSG): Testing found some MSG in Maggi noodles.

The packet stated "No added MSG"; however, MSG naturally occurs in
hydrolyzed peanut protein, onion powder and wheat flour. Maggi offered to
remove the words "No added MSG" from the package to minimize the
objection.
● Lead: Maggi noodles include flavoring packets named "Tastemaker" which is
intended to put in water during cooking. Maggi insisted that testing should be
done on the product as it is eaten; however, the FSSAI insisted that the
powder itself should be tested. On June 5, the FSSAI said that the prescribed
standards of 2.5 parts per million would have to apply to all components of the
product. Out of the 13 samples tested by Delhi authorities, 10 of them had
lead content exceeding this limit. The packets that initiated the investigation
from Uttar Pradesh had 17.2 ppm of lead. Nestlé also questioned the
reliability of the labs used. Results from testing outside of India (Singapore,
reported that Maggi noodles were safe. In the later Bombay High Court
judgment, the court agreed that the test results by earlier labs were unreliable.
 The court mandated testing to be done at three specific laboratories (Punjab,
Hyderabad and Jaipur) where Maggi was found safe. The lead may have
been naturally occurring in plants and soil or from Indian spices, although
within acceptable limits.

Company response

● Maggi has always says that their noodle product is safe. Maggi recalled stock
worth nearly Rs 320 crore from the shelves and paid 20 crores to a cement
factory to burn the product. In addition, Corporate Affairs Ministry imposed Rs
640 crore fine on Nestle India for the presence of MSG and lead beyond the
permissible limit.

Return to market

In India, Maggi products were returned to the shelves in November 2015,

accompanied by a Nestlé advertising campaign to win back the trust of members of
the Indian community. At this time, the Maggi anthem by Vir Das and Alien Chutney
took the nation by storm. Nestlé resumed production of Maggi at all five India-based
plants on 30 November 2015.

FSSAI Sting Operation

In October 2015, the India Today Television team conducted a sting operation in
which they approached FSSAI officials, pretending to have a food product with high
lead levels. The team reported that one of the officials agreed to pass the samples
without conducting any tests. Food and Consumer Affairs Minister Ram Vilas
Paswan reacted to the operation, promising to serious action, although FSSAI is not
administered by his ministry.
Criticism

Nestlé has faced criticism for its advertising not adhering to marketing regulations in
developed countries, and for making misleading claims in developing countries. In
October 2008 Nestlé mistakenly aired a commercial meant for Bangladeshi
television on British TV. The advertisement made false claims that the noodles would
"help to build strong muscles, bone, and hair". The British Advertising Standards
Authority says that the advertisement did not abide by the new EU consumer
protection legislation, by which advertisers have to provide proof of health claims.

Maggi regains top spot in noodles market with 57%

share in June

In November, when Nestle re launched Maggi after a five-month ban, it had 10.9% of
the market share.

In June 2015, FSSAI banned Maggi noodles in India following a Bombay high court
order. Photo: Bloomberg
New Delhi: Nestle India Ltd’s instant noodle brand Maggi, whose sales were
severally hit by the Food Safety and Standards Authority of India (FSSAI) ban last
year, has recollect its leadership position capturing 57% share of the market in June
this year. Within nine months of its re launch, Maggi noodles now accounts for 57.1%
market share of the instant noodles segment riding on its marketing /branding
initiatives and new variants. In November, when the company re launched Maggi
after a five-month ban, it had 10.9% of the market share, which decreases to 35.2%
in December, according to a Nestle India presentation made to financial analysts and
institutional investors. In March 2016, it had 51% market share. Nestle has launched
four variants of Maggi Cup a Noodles and Maggi Hotheads each, the presentation
said. Besides, it has also launched ‘No Onion No Garlic” noodles. On 18 August, its
parent firm Nestle stated that it has regained leading market share after growth in
India turned positive in June on good progress with re launch of Maggi noodle.

“Growth in India turned positive in June due to good progress with the Maggi noodle
re launch and favorable comparables. We regained a leading market share position.
India kept gaining momentum one year after the start of the Maggi noodle
withdrawal,” Nestle had said in the statement.

In June 2015, FSSAI banned Maggi noodles in India following a Bombay high court
order, saying it was “unsafe and hazardous” for consumption after finding lead
content beyond the permissible limit. After the five-month ban, in November last
year, Nestle India re launched Maggi noodles in the Indian market. Earlier this year,
Nestle India launched up to 25 products across various categories in a day to cut off
competition

‘Growing Up’ The Instant noodles market in India is finally coming of age after over
25 years The instant noodles category in India was, in a sense, created by Nestlé
with the
Introduction of their Maggi brand in mid-1980s.

The concept of ‘2-minute noodles’, positioned as a quick snack option for children,
found acceptance with both the children and their mothers as well. Having built and
nurtured the category’s evolution, the brand name “Maggi” almost became a
synonym for the instant noodles category itself. During the 1990s and 2000s, Maggi
faced little
Competition. However, in the past few years, we have seen consumer goods giants
ITC (Sunfeast Yippee!), Glaxo-Smithkline (Horlicks Foodles), and Hindustan Unilever
Limited (Knorr Soupy Noodles) foray into this same market with differentiated
product offerings. These brands have brought a competitive intensity to the space.
This market now also comprises private labels like Feasters (AV Birla Retail), Tasty
Treat (Future Group), and Smart Choice (Spencers). Even though ‘Maggi’
continues to dominate the market with a share in excess of 75%, the entry of multiple
Brands and the increasing aggression of existing brands has taken away several
percentage points from Maggi’s market share.
There are several reasons behind the growth this category has realized, in India,
some of which are mentioned below.

∙ Changing consumer lifestyles - Over the years, the change in consumers’

preferences and eating habits, and their wider global exposure, along with an
increasingly younger
population, the growth in the middle class, with more nuclear families, and the
growing time-poverty (as a result of there is in the number of working couples) has
given a boost to the convenience food segment. As a result, the instant noodles
market has charted a high growth trajectory thanks to its availability, affordability,
anytime-anywhere consumption and convenience, being a quick meal requiring
minimal cooking. Instant noodles have also emerged from being a snack food or an
occasional, alternate eating option to a mainstream food item of choice featuring
regularly in consumers’ grocery baskets.
∙ Growing customer base - The emergence of instant noodles has added a new
dimension to consumers’ meals; noodles are being consumed not just by kids (who
are the core target audience) as well as his mothers also like maggi noodles as an
evening snack or a ‘Tiffin’ meal but by consumers across all age groups, as an
eating option beyond the ‘mundane’ ones.
While it continues to be a home snack, it is also more consumed at workplace,
colleges, etc.

∙ More options and variants - Players present in the space are innovating and
adding value to establish a unique brand proposition in the consumers’ mind. Some
of the major developments in this direction include: Introduction of new flavors: To
kindle the consumer’s interest in the category and also to divert changing tastes of
the consumer, instant noodles brands constantly enhance their product offerings by
adding new flavors. In addition to the classic Masala and Chicken flavors, a wide
range of flavors including Indo-Chinese, Chinese, tomato, etc. have been launched.
Two Growing focus on health: Despite their fondness for instant noodles, consumers
in India hold the notion that noodles are unhealthy, being made from ‘maida’ which is
not being as healthy as ‘atta’. To address this concern, brands are proactively
introducing ‘Maggi atta noodles’

FSSAI briefs Parliamentary panel on Maggi controversy

Consumer Affairs Ministry officials informed the panel about the
growing concerns of consumers regarding safety of packaged food
products
Last month, FSSAI had banned Nestle’s Maggi, saying it is “unsafe and hazardous”
for human consumption.

FSSAI informed about all actions taken by the regulator in last one month against
companies selling sub-standard food products, sources said. Consumer Affairs
Ministry officials informed the panel about the growing concerns of consumers
regarding safety of packaged food products, they added. Last month, FSSAI had
banned Nestle’s Maggi, saying it is “unsafe and hazardous” for human consumption
after it found excessive levels of lead and taste enhancer monosodium glutamate
(MSG). Consequently, Nestle had to recall Maggi from markets.

Stall owners in the soup after maggi ban

The students who used to frequent this street feel equally

sour about the ban.

Forty-six-year-old Kailash Umavat is faced with a risky task to make ends meet after
he renamed his stall — BN Maggi house — to BN Parantha house on Monday
morning. The rebranded stall, located near the entrance of CEPT University, used to
dish out steaming hot noodles and pasta before the ban on Maggi was imposed.“My
stall has been here for three years. I used to make Maggi and pasta, and earn my
living from it. I don’t have another source of income either,” says Kailash, while
making a Gobi parantha.
Kailash vividly remembers the day when Maggi was banned. “On June 4, the health
department came asking us not to sell Maggi from the next day. We were all
shocked. The next day, I sent 192 packets of Maggi back to Nestle. There were 13
stalls near CEPT, of which I am the only one who has started a new stall. The rest
went back to their home places to do farming.” Apart from Kailash, the only other
stall on the same stretch is a stall selling idlis. He shudders while recalling the phase
during which he was unemployed. “I was unemployed for a week and didn’t have any
source of income. It was very difficult when there is only a single earning member in
a family of four. I decided to start earning somehow, and decided to sell paranthas
instead of Maggi.” He sells eight different kinds of paranthas in his stall. When asked
about the problems that he faces, because of the change in the menu he said, “The
list is endless. We don’t have the same number of customers now. Because of fewer
customers the profit has come down. We have to go to far off places to get
vegetables early in the morning. Everyday we suffer a loss of Rs 100-150, because
we have to throw the leftover parantha stuffing and curd. When we were Maggi
waala’s, we used to earn Rs 30,000 per month, and now we manage Rs 20,000 per
month”. “Will Maggi ever make a comeback,” asks Kailash as he gets busy with work
in his stall that opens at 7:30 am and runs late into the night.

The students who used to frequent this street feel equally sour about the ban. Abhi
Sanghani, a student working as an intern in CEPT said, “We all have been eating
Maggi here since we joined the college and was a hit among the students. It was
banned because of high lead content but cigarette are still sold freely.”

Maggi tops noodles charts again, in just over 4 months

NEW DELHI: Nestle BSE (Bombay stock exchange)-1.53 % India Chairman Suresh
Narayanan has said that Maggi instant noodles, banned for a few months last year,
had returned to leadership position in the country, with close to half the share of the
market estimated at a little over Rs 2,000 crore.

The share of the instant snack was over 48% in February, according to data by
market researcher Nielsen, still significantly lower than the 77% it commanded at the
same time last year. Narayanan said Maggi is now available in over 2 million outlets
and variants such as oats and atta noodles would be back on the shelves over the
next couple of weeks.

We are reigning the Maggi portfolio under noodles, pasta and sauces," he said.
Before the controversy, Maggi was sold at about 3 million outlets in the country.

Nestle re launched the three-decade-old instant snack brand in November, after it

was taken off the constant in June following the ban by the nation's food regulator.
"Maggi used to contribute close to 30% of our portfolio before the controversy.

Maggi makes a strong comeback, regains top spot

in noodles market

Following the FSSAI ban on Nestle India’s instant noodle brand last year, Maggi has
regained leadership position by capturing 57 percent share of the market in June this
year.

Within nine months of its re-launch, Maggi noodles now accounts for 57.1 per cent
market share of the instant noodles segment, thanks to its marketing/branding
initiatives and new variants.

Back in November, when the company re-launched Maggi after five-month ban, it
had 10.9 % market share. However, it quickly climbed to 35.2 % in December,
according to a Nestle India presentation made to financial analyses and institutional
investors. In March 2016, it had 51 % market share.

According to the presentation, Nestle launched four variants of Maggi Cup a Noodle
and Maggi Hotheads each. Apart from these, it has also introduced ‘No Onion No
Garlic” noodles.

On August 18, Nestle said that it has regained leading market share after growth in
India turned positive in June on good progress with re launch of Maggi noodle.
“Growth in India turned positive in June due to good progress with the Maggi noodle
re launch and favorable comparables. We regained a leading market share position.
India kept gaining momentum one year after the start of the Maggi noodle
withdrawal,” Global food and nutrition giant Nestle had said in the statement.

After the five-month ban, Nestle India re-launched Maggi noodles in the Indian
market in November last year. Nestle India also launched up to 25 products across
various categories in a day to protect competition earlier this year.

After the ban, what can help Maggi regain its brand value

Regaining customer confidence isn’t easy once consumers have a

negative perception of a brand. Crisis management requires more
than a hurriedly called press conference

In today’s world of citizen journalism, news goes viral in a flash. And if it is bad news,
it goes viral within a minute and impossible to stop. The cocktail of the online and
offline world, consumer and shareholder activism, random decisions by government
bodies, volatile social groups, and hatchet jobs by competing firms make it all too
easy to fall from grace. And the loss of goodwill can play out in the form of
decreased revenue, loss of clients or suppliers and loss of market share.

The latest brand to find itself in this quagmire is Maggi, the instant noodles brand
from food and beverage company Nestle. One of India’s most trusted brands and
perhaps the country’s most lovable and comfort food, it has taken a huge knock in
terms of brand value and sales ever since the recent controversy broke over
allegations that it had lead and monosodium glutamate (MSG) in excess of
permissible limits and was, therefore, risky to consume. The controversy arose after
the Uttar Pradesh Food Safety and Drug Administration ordered the recall of a batch
of 200,000 Maggi noodle packs. With more and more states deciding to randomly
test samples and banning sales in the interim, coupled with retail chains removing it
from their shelves, the company has had no other choice but to regain the product.

Maggi was ranked number 18 in the BrandZ Top 50 Most Valuable Indian Brands
study, conducted by Millward Brown and commissioned by WPP last year, with a
valuation of $1,127 million. It is expected to have decreased in brand value by at
least 30-40%, say brand specialists. Sales have dropped by at least 60-70%, say
retail analysts.

Brands in trouble

Maggi isn’t the first brand to find itself in the dock. Many a brand in India and
elsewhere has seen their reputations bad after one single incident, sometimes for no
fault of theirs. Fast food chain McDonald’s has been battling its “unhealthy” image
and has seen its share of obesity lawsuits in the US, on account of its unhealthy
food. While cola brands Pepsi and Coca-Cola were being investigated for pesticides
in their drinks, chocolate brand Cadbury had to face flak because of a worm
infestation controversy.

Parmeswaran adds that while all the debate on packaged foods and quality
standards rolls on, people of India consume a dusty road food daily. “Probably the
packaged branded goods are still the safest,” he remarks.

The ITC Group owns the Sunfeast Yippee brand of instant noodles. An ITC
spokesperson said, “It is too early to gauge the impact on the industry as a whole.
But ITC’s food products are manufactured in state of the art, world-class facilities.
Strict quality and hygiene norms are followed in the manufacture of all products.
Stringent checks are undertaken for these products at ITC’s internationally
benchmarked Life Sciences & Technology Centre as well as at reputed external
laboratories. In all these tests, our food products have consistently been found to be
completely safe for consumption and in compliance with all regulations.”
How Maggi noodles became an iconic Indian snack

India has ordered tests on Maggi noodles after some were found to contain high
levels of lead. They have been temporarily banned from sale in Delhi and some
grocery chains have taken them off their shelves. Nestle India denies its products
are unsafe. Food writer Sourish Bhattacharyya explains India's enduring relationship
with its favorite noodles.

When Maggi instant noodles arrived in India in 1983 - the year when India lifted the c
The idea that anything could be cooked in two minutes had an immediate impact on
a people that had invented slow food centuries before it became fashionable in fast
food cultures. The "two-minute noodles" advertising campaign on state-run television
with which Maggi launched itself turned out to be an instant attraction because of its
liberating message for women.

The "Maggi Mom" was not only seen as loving and caring of her children as her
mother was of her, but she was also able to juggle her workplace and domestic
responsibilities because of the snack.
Changing profile

Coming from Nestle, it had to be trusted, despite the foreignness of a product that
India had not seen before. The Maggi promotional campaign, moreover, was among
the first to recognize the changing profile of middle-class women in metropolitan
India.

Nestle has had a long relationship with India that goes back to 1912, when it
launched in the country as The Nestle Anglo-Swiss Condensed Milk Company
(Export).

Milkmaid, a sweetened condensed milk, was the brand that the company soon
became synonymous with. Its 400g can hasn't changed over the century, although
the packaging has become slicker.

After India's Independence - 1947, incidentally, was the year when Nestle acquired
Maggi - the company was quick to recognize the new government's emphasis on
local production and formed its Indian subsidiary in 1961, setting up its first factory at
Mega in Punjab state.
The choice of the location was also government-dictated because the then
dispensation, steered by the socialist idealism of India's first PM Jawaharlal Nehru,
wanted Nestle to develop the milk economy of Punjab.

Maggi travelled across India on the back of this formidable legacy and soon it was
everywhere. Within its first 25 years, it was able to command 90% of the quick
noodles market it had created.

Unsurprisingly, when the brand launched the Me and Meri Maggi campaign (Me and
My Maggi campaign) in its silver jubilee year in 2008, inviting people to send in their
personal Maggi stories, its advertising agency Publics Capital was deluged with
more than 30,000 entries.

It was a testimony to the deep inroads Maggi had made into the everyday lives of its
loyal customers.

India today is the biggest market for Maggi noodles in the world, despite the serious
challenge mounted on the brand by rival Top Ramen in the 1990s.

And Maggi, along with the buffet of complementary products - soup mixes, sauces
and cup noodles - contributes more than 20% of Nestle India's revenue, clocking
around 15bn rupees ($235m; £149m) in annual sales. Just last year, a leading
survey re-affirmed what everybody knew already: Maggi was the country's most
trusted food brand.
The Business Week magazine commented with considerable insight in 2006: "Maggi
has managed to enter Indian homes to change the traditional food habits of Indian
children on its promise of convenience. This brand has understood the psychology of
Indian mothers and positioned itself for mother-child indulgence."

'Maggi entrepreneurs'

Priced at 12 rupees (18 cents; 12 pence) a serving, and with three generations of
Indians growing up with it, Maggi was able to transcend all age and economic
divides.

It spawned legions of Maggi "entrepreneurs" who have been selling instant noodles
to office-goers and college students with nothing more than a pressure stove, cheap
aluminum utensils, and stainless steel crockery and cutlery at their command.

Popular hangouts such as Jaipur's Tapri restaurant, which began as a "Maggi joint”,
started by two MBA graduates, serve Maggi in a dozen innovative ways. A lot goes
on over a piping hot bowl of Maggi.

Farzi Cafe, restaurateur Zorawar Kalra's hugely successful venture at India's first
"food mall", in Delhi's suburb of Gurgaon, used to serve Maggi with foie gras.
India banned the import of foie gras last year following protests by animal rights
activists that the method used to produce the French delicacy by force-feeding ducks
and geese, was cruel.

"I must say I fell in love with it - before the government banned foie gras. It's ironic
that the other half of this delectable dish, Maggi, is also heading towards a
nationwide ban," Zorawar Kalra says.

Moments before the 15-day ban on the noodles came into effect in Delhi on
Wednesday, a popular business news channel anchor plastered Facebook with
pictures of her and her colleagues wolfing down their "last bowl of Maggi".

There was a sense of loss and longing in her post, and it encapsulated the feelings
of most Indians who have grown up with Maggi.

For years, many Indians have considered Maggi to be junk food and most schools in
Delhi do not stock the snack in their canteens. Parents who give Maggi products to
children in their lunchboxes have been sent polite notes advising them against doing
so.

But as the sales show, millions of Indians buy and consume Maggi daily and a quick
search on Google shows lots of different ways, including some rather strange ones,
in which people cook and consume the snack.
Well known food writer Tarla Dalal offers recipes to make samosa patties stuffed with
cooked Maggi, cheese and vegetables; deep fried Maggi-cheese-vegetable fritters;
and adding cooked noodles with cheese and herbs to make open toast sandwiches.

There are also recipes for making Maggi-omelet’s and vegetable soups with Maggi.

But the snack achieved cult status in India mainly because of the ease of cooking it -
Maggi's "two-minute" advertising campaign suggested just opening the pack and
adding the noodles and seasoning to boiling hot water and cooking it for just two
minutes.

And that is just how most Indians like to eat what are often described as "India's
favorite noodles".

Nestle's Maggi Noodles Make A Comeback In India,

Both Online And Offline

Nestle India brought back its Maggi noodles to store shelves today, in time for India’s
biggest celebration, the Diwali festival of lights, five months after it was banned over
allegations that it was dangerously contaminated with lead. Nestle India said the
noodles are “100% safe” and have cleared laboratory tests mandated by the
Bombay High Court.
The popular ‘2 minute’ Maggi instant noodles were taken off the shelves across the
country in June this year, for the first time since its launch over three decades ago,
after the government-run food regulator Food Safety and Standards Authority of
India found the product contaminated with lead and taste enhancer monosodium
glutamate (MSG) beyond permissible levels.

Now, the noodles are back. Besides store shelves, Nestle India has partnered with
leading Indian online retailer Snapdeal to roll out online offers. Reports said the
noodles, offered at 144 rupees (just over $2) for 12 packs of 70 gms each quickly
sold out. The variant that has made a comeback is the masala (mix of Indian spices)
taste which is the most popular.

In a statement, Suresh Narayanan, the new chairman and managing director of

Nestle India said it was a moment of celebration for the firm and its retailers and
suppliers. “I feel happy to be able to give back to them their familiar taste during the
auspicious and festive Deepawali season.”

Prior to the ban, Maggi ruled India’s instant noodles market not just with its ubiquity
in the remotest corners of India but also with its popularity as a quick-fix meal. The
brand had over three-quarters share of the market.

But the months-long ban on the popular noodles brand had severely hit Nestle
India’s sales revenues for the last two quarters. Its profits in the most recent quarter
ending in September dipped 60% over the previous year. The multinational has
recalled and gutted over 30,000 tons of the instant noodles since the ban.

Nestle India’s stock too was battered after the contamination scandal. However, on
the day Nestle India announced that it would resume manufacturing the noodles,
Nestle India’s share price jumped 4%.

The company said it is engaging with those states where the noodles brand is still
banned. The product is currently being manufactured in three of the five locations
including in Nanjangud, near Bangalore. In the two other locations, Nestle India is in
talks with the authorities to get permissions to commence manufacture.
Nestle’s Maggi makes a comeback without major
brand ambassadors

Maggi would now be available across the country except in Bihar, Odisha, Manipur,
Nagaland, Tripura, Punjab, Himachal Pradesh and Uttarakhand, where the company
is yet to secure the requisite clearances.

Nestle India’s popular instant noodles Maggi has made a comeback — five months
after the company was banned from selling the product in India for allegedly
containing lead beyond permissible levels, but this time around the company will not
leverage brand ambassadors Amitabh Bachchan and Madhuri Dixit to reconnect with
the massage.

Suresh Narayanan, chairman and managing director, Nestle India, said, “Our
promotional strategy will be across three platforms. We will use traditional media to
reassure our consumers regarding the safety of our product. We will connect digitally
with our target group. Besides, there will be a lot of events for brand activation.”

When asked about Nestle India’s contracts with brand ambassadors Amitabh
Bachchan and Madhuri Dixit for promoting Maggi, Narayanan said, “The earlier
contract has lapsed. We have not reached fresh agreements. We are not ruling it out
forever but as of now we do not plan to use brand ambassadors for promoting the
product.” A court case had been filed against Amitabh Bachchan and Madhuri Dixit
in Uttar Pradesh in June when food regulators where testing the product. Narayanan
said there will be a “fairly substantial” increase in marketing spends and advertising
campaigns to bring back customers in whose minds “a seed of doubt has been
planted” due to the crisis.

Nestle India launched Maggi in 100 towns through 300-odd distributors on Monday,
The product will be rolled out in many more areas in the coming days. Prior to the
ban, the company was selling Maggi through four million outlets in 450 towns.

Maggi would now be available across the country except in Bihar, Odisa, Manipur,
Nagaland, Tripura, Punjab, Himachal Pradesh and Uttarakhand, where the company
is yet to secure the requisite clearances. The company is engaging with these eight
states to complete due diligence procedures.

Maggi noodles would now be available only in the masala variant at the same price
as of June 2015. The other formats would be introduced gradually. “We have re
launched Maggi. We have been through arguably a very big crisis in the last couple
of months. I am glad that we have been able to vindicate once again, the quality,
safety and credentials as we reintroduce Maggi selectively…” said Narayanan.

Narayanan added Nestle India has not changed the contents of Maggi. He informed,
“We are giving what consumers have loved for 32 years, the only change is on the
package. There is a small set of words that conveys the company’s commitment to
quality and goodness that consumers can trust.”

The company is presently manufacturing Maggi noodles at three locations –

Nanjangud (Karnataka), Mega (Punjab) and Bicholim (Goa). Two more plants in
Himachal Pradesh and Uttarakhand, where the instant noodles is still banned, are
yet to start. The company is engaging with authorities there in order to start
production in those two units at the earliest.

Maggi had to undergo tests in three government-accredited laboratories in Jaipur,

Hyderabad and Mohali, as ordered by the Bombay High Court prior to commencing
sales in the market.
The Swiss food major has also partnered with online marketplace Snapdeal for
selling Maggi.

Post the Maggi crisis, Narayanan said Nestle India will go for product portfolio
diversification with focus on dairy, coffee and beverages as well as chocolates and
confectionery in order to avoid over-dependence on a single product.

Nestlé India Changes Packaging of Iconic Brands MAGGI,

NESCAFÉ and KITKAT Supports the Cause of
#EducateTheGirlChild with Nanhi Kali

Nestlé House, 26 September, 2016: Nestlé India has brought about a change in
packaging of three of their most iconic brands, MAGGI, NESCAFÉ and KITKAT to
support girl child education in association with Nanhi Kali, one of the largest NGOs
imparting education to underprivileged girl children across India. In an attempt to
spread awareness for this critical issue of girl child education in India, Nestlé has
changed packaging of 100 million packs available on shelves by the end of
September.

In an innovative approach and for the first time in India for any FMCG brand,
MAGGI, NESCAFÉ and KITKAT will give up their most iconic and recognized brand
properties to support the cause of educating the girl child. MAGGI has changed its
tag line from “2 minute noodles” to “2 minutes for education”. KITKAT has
changed the visual of the finger snap to one without the break with the line “No
break from education” and NESCAFÉ changed the tagline “It all starts with a
NESCAFÉ” to “It all starts with education”. This has been further reinforced with a
blue band which carries more information on the association with the URL of Nanhi
Kali.

Speaking on the partnership Mr. Suresh Narayanan, Chairman and Managing

Director, Nestlé India said, “Brands are built with purpose and exist by earning the
love and trust of consumers over time. Each time a consumer picks a pack off the
shelf, the visual properties of the brand serve as symbols of the promise the brand
has made to the consumers. These are invaluable assets, protected, cherished and
treasured by organizations. We are changing the packaging of three of our most
iconic brands to sensitize and draw attention to the crucial need for society & citizens
to embrace our collective responsibility in ensuring that girls are allowed, given
access to and nurtured with the power of education. Girls with access to education
not only improve their own lives but also bring positive changes to their families,
communities and economies. This is our belief and conviction as Nestlé India and
our humble way of making a small yet deeply felt contribution to a cause that is
important and vital to Indian society.”

Mr. Anand Mahindra, Chairman, Mahindra Group, says “This is a path-breaking and
innovative partnership between Nestlé India and a non-profit organization, both
leaders in their respective field. We believe that supporting girl’s education is a
national priority and will have a far reaching positive impact on society. I am sure the
new packaging of MAGGI, NESCAFÉ and KITKAT carrying the message to
#EducateTheGirlChild will have the desired impact of helping Nanhi Kali put a million
girls in school. I am immensely grateful to Nestlé for their support to Nanhi Kali."

The partnership with Nanhi Kali further strengthens the Nestlé Healthy Kids
Programme which has already reached out to about 1,00,000 beneficiaries. Project
Nanhi Kali, jointly managed by K. C. Mahindra Education Trust and Naandi
Foundation, has been a credible programme working in the area of girl child
education for decades. Leveraging on the extensive work done by Nanhi Kali, Nestlé
India is supporting this cause and has become a part of the movement.
 CHAPTER 5
Findings & Conclusion

Finding from internet :

Maggi is lovable and trustable brand in India. Other products like knorr, sunfeast and
horlicks are not that much lovable in India. These brands are second option for
noodles lovers. Due to high level of lead maggi is banned from the market but now
maggi is back with a new idea and new flavors.

Finding from television:

From the television we find the news in which maggi controversy is mentioned.
Maggi is ‘unsafe and hazardous’ for health because it includes high level of lead
which is not permissible by food authority of India.

Finding from newspaper:

With the help of news paper we are getting aware about the controversy and also
aware about the comeback of maggi with new flavors and with new approach.
Conclusion

The food processing business in India is at a nascent stage. Riding on the success
of noodles, Nestle India, tried to make extension of magi brand to a no. of products
like, pickles, sauces, ketchup, tastemakers and macaroni in mid 1990s.

Maggi today the year 2016 saw India leading in worldwide maggi sale. The brand
has grown to an estimated value of rs.160-170 and contribute at least 8-9% to Nestle
India’s top line. All the same, some FMCG analysts feel that the brand has not done
much to expand the noodles category. Even after 25 years of its launch, the size of
the instant noodles market is yet quite small at rs300 crore.

But yes, the parent company, Nestle India Limited has certainly encouraged the
brand to enter into other culinary products.
Websites:

www.nestle.in

www.maggi-club.in

www.indianjournalofmarketing.com

www.wikipedia.com

www.careerdynamo.com/marketing_journal.html