NESTLE MAGGI

GROUP 5
Name Roll Number Name Roll Number
Anshika Goel MBA20092 Soumyajit Karam MBA20140

Poorva Sinkar MBA20117 Trishali Yadav MBA20141

Prajjwal Kamboj MBA20118 Devesh Kapri MBA20282

Satyam Sharma MBA20129 Suyash Wagh MBA20287

Shah Shail Haresh MBA20130 Patel Raj MBA20312

 Introduction

• In May 2015, the local food safety regulator of UP

demanded the company to recall a batch of Maggi
noodles.
• Nestlé  underestimated the size of the problem. It kept
quiet for almost three weeks after the recall order. 
• Alarmed by the public anger, several states ordered tests
and started issuing bans on the sale of Maggi noodles. 
• Nestlé has adopted a defiant position.
• By the end of June, the situation has got out of hand, so
the global CEO Paul Bulcke handled the situation.
• Nestle says it had recalled 37,000 tons of Maggi noodles.
Nestle and Maggie

Maggi  founded in 1884 in 90% Market Share Before Most popular instant
Switzerland the Controversy  noodles brand in India
Acquired by Nestlé in Reduced Market Share Popular amongst kids
1947 53% and youngsters 
 Problems and
difficulties

• Lead affects multiple body

systems,
A food inspector at Uttar Pradesh government’s Food Safety and Drug Administration spotted • Causes damage to the central
nervous system in children.
the label that claimed “no added MSG" on the packets of Maggi noodles in March 2014 and • It can get stored in the teeth and
sent a sample and to the state laboratory at Gorakhpur for testing Health hazards bones, where it accumulates over
time
due to • Pregnant women: miscarriage,
Results of the test Expected results excessive lead prematurity, low birth weight, etc.

MSG: Present "no added MSG" as per the

pack details
Lead: 17.2ppm (parts per Permitted level of lead in instant
million) noodles is 2.5 ppm. • It can cause several health issues,
including a headache, nausea,
sweating, weakness, chest pain,
tingling or burning in the face as

The Uttar Pradesh food safety The company did

 Health well as neck and other areas.
• It is claimed that MSG can cause
commissioner sent a formal mail its response On 5 June 2015, the Between 5 June and 1
September 2015, Nestle
Hazards due to asthma and even brain damage.
notice to Nestle seeking along with its internal day FSSAI asked
clarification on presence of monitoring Nestle to recall
collected 38,000 tonnes
of Maggi noodles and
MSG
MSG and lead in Maggi documents on 5 May Maggi noodles destroyed them
samples 2015
Analysis

01 02
Consumers Perception Effects on the Company
How did the customer What impact the ban had
base reacted on the company
Consumers Behavior

Why 12%

Maggi
Reason behind choosing
Brand Others
8%
Maggi 56%
18%
• Taste was the reason behind more than Taste
50% of sales Price

• 6%
18% was due to price and 12% due to
brand
Healthy
• Only 6% purchased Maggi thinking it to
be healthy
 Effects on the Company

Company sustained a huge dent on the brand identity

Nestle India Ltd. destroyed Maggi noodles worth ₹ 3

Bn

NIL reported its first quarterly loss in 17 years and the

revenues fell by 20%

Pressure from market to relaunch the product meeting

the safety standards
Reactions to the Ban

36%
64% Ban
Don’t Ban

• Maggi was so popular that almost everybody

came to know about the ban

• 64 % consumers opposed the ban

• Not satisfied with the substitutes available

• People wanted Maggi to be relaunched, but

with improved safety standards
Solution

How Nestlé India dealt with the aftermath of the ban

Efforts to rebuild the Maggi brand
Solution taken by
Nestle India

Nestle India division managing director was replaced by Suresh

Narayan in wake of the ban of Maggi.

Several initiatives were taken focusing of Regaining of market share

after the ban was lifted.

Prasoon Joshi was roped for the advertisement campaign and social
media trend was started with #wemissyoumaggi

Strategy was made to create hype and one liners like welcome back ,
we miss you were displayed at several retail stores.

Nestle also partnered with Snapdeal and Maggi was made available
through Snapdeal.
Solution taken by
Nestle India

Creating product hype through exclusivity: Registrations for Maggi’s

welcome kit began on 9th November 2016, and 60,000+ kits were sold in 5
minutes when the sale began on 12th November on Snapdeal. 

The first ad after Maggi’s re-entry featured a mother speaking

nostalgically about her child’s tryst with Maggi, highlighting products'
emotional appeal. 

During the crisis, Maggi’s responses on Twitter and Facebook lacked

genuineness as most of the responses were automated. After the ban,
their responses/communication had a great deal of understanding and
were personalized with an emotional connect.
What Could Have
Been Done

More focus on Contingency

Faster Response More consumer
public opinion plan
engagement
Maggi focused more Maggi responded to Slow response was Company could have built
on the regulatory the media after nearly seen as an admission a crisis management plan
aspect rather than the two months from the of guilt by public foreseeing such situations
public opinion part product recall
What Could Have
Been Done

Give concise to
political and social
Better Media Simple access to
issues Relations answers
Maggi did not consider The company should Public
the social and political maintain the strong communications
issues of a PR crisis in media presence. should be clear and
India. understandable
Thank you