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    Nestle faced a major crisis when its Maggi noodles brand was banned in India in 2015 over high lead content. The company lost over $77 million and had to destroy 37,000 tons of noodles. However, Nestle India chairman Suresh Narayanan led the company's recovery efforts. Nestle increased communications, launched new products to diversify from Maggi, and appealed to consumers' nostalgia to regain Maggi's market share of 60% within a year. The company worked closely with the government to ensure food safety compliance as it rebuilt consumers' trust in the Maggi brand.

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    Nestle faced a major crisis when its Maggi noodles brand was banned in India in 2015 over high lead content. The company lost over $77 million and had to destroy 37,000 tons of noodles. However, Nestle India chairman Suresh Narayanan led the company's recovery efforts. Nestle increased communications, launched new products to diversify from Maggi, and appealed to consumers' nostalgia to regain Maggi's market share of 60% within a year. The company worked closely with the government to ensure food safety compliance as it rebuilt consumers' trust in the Maggi brand.

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    13 views13 pages

    Group 4

    Uploaded by

    YASH ALMAL
    Nestle faced a major crisis when its Maggi noodles brand was banned in India in 2015 over high lead content. The company lost over $77 million and had to destroy 37,000 tons of noodles. However, Nestle India chairman Suresh Narayanan led the company's recovery efforts. Nestle increased communications, launched new products to diversify from Maggi, and appealed to consumers' nostalgia to regain Maggi's market share of 60% within a year. The company worked closely with the government to ensure food safety compliance as it rebuilt consumers' trust in the Maggi brand.

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    of 13

    NESTLE

    MAGGI
    THE CRISIS

    JUN E 2 015
    By- • Diksha Tharad
    • Hamshika S.
    • Puspendu Pahari
    • Rahul Sur
    • Shriya Rajgaria
    • Yash Almal
    COMPANY - NESTLE

     Swiss multinational food and drink processing corporation.


     Headquarter : Vevey , Switzerland
     Founders: Charles Page, Henri Nestlé
     Origin of Nestle
    Anglo-Swiss Farine Lactée
    Milk Nestlé
    Henri Nestlé
    Company (1866) (1905)
    (1866)

     Began import in India in 1983.


     Indian head office : Gurgaon, Haryana.
     First production facility at Moga in Punjab.
    BRANDS & PRODUCTS
    BRANDS OF NESTLE
     NESCAFE
     MILKYBAR
     KIT KAT
     BAR-ONE
     NESTEA
     MILKMAID
     MAGGI
    PRODUCTS OF MAGGI
     Maggi Oats Noodles
     Maggi 2-Minute Noodles
     Maggi Cuppa Mania
     Maggi Magic Cubes
     Maggi Masala-e-Magic
     Maggi Pazzta
     Maggi Sauces
     Maggi Healthy Soups
     Maggi Coconut Milk Powder
    Media Apperances and 0utrages:
    Nestle lost more than Rs 500 crore (US$77 million) over the ban, which
    forced it to destroy more than 37,000 tonnes of Maggi noodles.
    (thequint.com)

    “Maggi is the worst crisis that we have faced in the 104


    years of our existence in this country “
    -Narayanan (businesstoday.in)
    ‘Think Global, Act Local’ :

    Maggi
    crisis: Around 1,500 workers i
    mpacted in India
    Are we consuming food that is not safe? How can companies
    launch food products without requisite approvals? And, at a
    larger level, who is responsible for food quality in India?
    “RECONSTRUCTING THE DEMOLISHED
    HOUSE”
    The company tapped Suresh Narayanan, chairman and managing director of
    Nestlé India, to guide the brand to recovery.

    The company introduced scores of new products and variants to build a balanced
    portfolio and reduce dependence on a single product.

    Narayanan also increased the company’s emphasis on health and nutrition.

    The company substantially increased its communications staff.

    Nestlé managed the situation so effectively that not only did Maggi Noodles get
    a clean chit, it also regained its original market share of close to 60 per cent
    within a year of the crisis.
    HOW NESTLE BOUNCES BACK

    EMOTI
    ONAL T USING TH
    #WE M O
    ISS YOU UCH NOSTALG
    E
    MAGGI IA
    FACTOR#
    LET
    YOUR MO
    MAKING M
    I KNOW
    EXCLUS T LAUNCH
    IVE FAQ PAG
    ON THE
    IR WEBS E
    COORDI ITE
    NATE WI
    GOVERN TH
    M E NT RETAINS
    CO M P L I ORGINA
    ANCE FLAVOUR L
    &
    ATTRIBU
    TES
    STEPS TOWARDS CHANGE
    • USING NOSTALGIA FACTOR • FAMILY BASED
    #WE MISS YOU TOO ADVERTISEMENT
    • The Perfect Medium For Launch • Increased AD Space &Campaign
    • Snapdeal Exclusive
    FACEBOOK=275000 LIKES
    TWITTER = 95700
    FOLLOWING
    SUGGESTION

    PREVENTI
    REACTION
    ON

    Variables Of
    Communication
    Risk

    Simulation Acceptance
    THANK YOU

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