NESTLE’S MAGGI PRICING AND REPOSITIONING

HUSNAIN JAVED
233730933
INTRODUCTION

• In June 2015 Paul Bulcke global cheif excutive officer

urgent flight to India
• Maagi was banned from its second largest market
• Ban seprated neighbour countries uited kingdom, Nepal
and Singapore
• banned due to unsafe for human health
• Access level of lead and MSG(monosodium glutamate)
• Nestle withdraw the product worth was 2.1B Indian
rupees
• Mnagement busy in re-positioning straytegy
Maggi Crisis

• Tested Maggi sample at kolkata’s laboratory

• Product contain 17 parts per million leads
• Exceeded the permissible limit 0.01
• Nestle Refused all claims
• Nestle spoks person said
 We don’t add MSG
 It may come from naturally
Losses

• Nestle loss 20% revenue

• Brand value of Maggi fall 13 billion indian rupee
• Nestle’s Stock fell by 15 %
• Market capitalization loss of 100 billion indian rupee
• Impact on entire value chain like employees and suppliers
what nestle was thinking

• Design a comeback strategy or relaunching

• Relaunching require a focus on
 pricing
 repositioning
 other operational issues
Role of pricing

• To relaunch the product pricing strategy effect the

consumer behaviour
• Patanjali growing comapny after Maggi incident
• Patanjali enter in Noodle market
• claimed it suprior to maggi
• sold at 15 compared to 25 equivalent size of maggi
Possible strategies for Nestle

• Increase value with same price

• increse value with high price
• Increase value with low price
Urgency For Comeback

• Emerging economics contributed 43% nestle revenue

• in 2014 sales in emerging market 8.9%
• developed market sales 1.1%
• In 2014 $623 million sales in india
• 63% of noodle industry hold by maggi in india
• MaGGi was one of the five most trutsed brand
Indian Noodle Market Share
sales Forcast

• Growth rate of 50% in

2019 as compared to 2014
Positioning strategies

• Me and meri maggi

• Two minute mein
Khushiyan
• #HealthyIsEnjoyable