3. SYNOPSIS OF THE CASE
• The case deals with pre and post ban effects of Maggi in India .
• Nestle India was India's third largest FMCG company after HUL and ITC
enjoying distinct advantage over competitors in the food and beverage space.
• Even after 31 years, it enjoys one-third of the noodles market share in India.
• The tough phase of maggi started on 10 March 2014 when FSSAI issued a
statement pointing out 3 major violations
• To sustain the crisis period Nestle India adopted many strategies such as
voluntary recall of stock, internal survey, usage of social media etc…
• Repositioning strategies to win the confidence such as heavy promotion,
24x7 consumer engagement services, Unique website to address concerns
4. TARGET AUDIENCE
• The Maggi brand have main targeted the
1. Kids
2. Youth
3. Office goers
4. Working women
• which falls in to category of “convenience savvy time misers” who
would like to get some thing instant and be over with it quickly
5. PRODUCT, WHAT WENT WRONG
• Release of Maggi oats masala noodles in the market without risk
assessment and grant of product approval
• Misleading consumers by printing ‘No added MSG’ on the
Maggi packets
• Presence of lead in excess of the max permissible levels 2.5ppm
where as in Maggi it is nearly 17.5ppm
6. MAGGI PRICING
• Considering the price points in the market for Maggi it should continue to
position itself in the snacks
• Affordable by all income groups
• Lower price point strategy
• Inflation effect on volume than price- Reduction of 100grams pack to 95
grams, keeping price at Rs.10 only
• Differentiated packing multi packs at cheaper price while healthier packs at
higher price
• Maggi 2 minute noodles entered in to Indian market with price of 2.10 rs
with a close of 100% margin
7. MARKET PENTREATION
• Promotional campaigns in school
• Advertising strategies : focusing on kids
• New product innovation according to the need of the consumers:
-Veg Atta noodles
-Cuppa mania
• Availability in different packages
• Conducting regular market research
• Maggi became omnipresent travelling across India available at reharis to
hotels, hilly areas to islands, High- tech cities to under developed villages
8. POSITIONING
• Positioned their product with the well know slogan
• “2-minute noodles”
• “taste bhi health bhi”
• “Easy to cook good to eat”
• Positioned their product as to get fast relief from hunger
PROMOTION
• 2008 Me and meri Maggi campaign, during its silver jubilee year
• Scratch n win offer
• Money back offer
• Price-off offer
• Sponsor school quiz…
10. FINANCIAL IMPACT
• Withdrawal of stocks of Maggi allover India
• Due to litigation filed against the company, it also saw an increase in legal and
other expenditure as well
• The company, which has been working with Nestle since the last three
decades and supplies spices to it every month, shut the production lines
catering to Nestle
• Share market suddenly collapsed for Nestle India limited
• Not only the sales of noodles but other Maggi food items like ketchup, pasta,
and cooking aids were also impacted with the company’s goodwill taking a
major hit
11. POST IMPACT TARGETD AUDIENCE
• People staying away from their home
• Working women
• Kids
• Office goers
12. NETWORK STRATEGY
• Me and Meri Maggi campaign
• #WeMissYouToo Share this & keep spreading the MAGGI love!
• “Your Maggi is safe, has always been”
• #maggiInasoup
• Heavy Promotions
• 24x7 customer Engagement Service
• Unique website to address concerns