MAGGIE :

CASE STUDY
PRESENTED BY :
ABHISHEK YADAV
SHUBHAM KUMAR
SUDESHNA SINGHA ROY
NESTLE COMPANY
 Nestlé India Limited is the Indian subsidiary
of Nestle which is a Swiss multinational company. The
company is headquartered in Gurgaon, Haryana. The
company's products include food, beverages, chocolate,
and confectioneries.
 The company was incorporated on 28 March 1959 and
was promoted by Nestle Aliment ana S.A. via a
subsidiary, Nestle Holdings Ltd.
 As of 2020, the parent company Nestlé owns 62.76% of
Nestlé India .The company has 9 production facilities in
various locations across India.
MAGGIE
 Maggie is first introduced in 1872 in Switzerland by
JULIUS MAGGIE.
 Entered India in 1982 with it’s instant noodles formula
(2-minute noodles).
 Later, it is owned by NESTLE company in 1947.
 Maggie is the most attractive, tastiest and cheapest
food in the Indian market.
 In India, the word “Maggie” means noodles.
Famous Taglines
 2 minutes noodles
 2 minutes for education
 Maggi takes the health route
 Happiness is homemade
 Mummy, I am hungry
 Enjoy your Maggi
 Awesome taste of 20 spices
 Extra delicious
 Your food for style
 Your favourite masala taste
 Uljha Maggi sab suljhaye
 Taste bhi health bhi
 Goodness of fibre for 3 roties
S
W
O
T
Why Maggie got banned ?

 As we all know nestle Maggi is one of the most

trusted brands in India but food experts in Uttar
Pradesh discovered that it contains excessive lead
content in their research it was verified by Kolkata's
fssai team as well and this was their conclusion The
product was found to contain 17 parts per million
(ppm) of lead, which exceeded the permissible
limit of 0.01ppm.
Competitors
 Top Ramen, 2.5%
 SunFest Yippee, 10.81%
 Knorr, 1.79%
 Bambino,5.10%
 MTR,1.31%
 Wai Wai,1.26%
 Ching’s Secret, 1.19%
 Patanjali Ayurved
Impacts
 The controversy caused both tangible and intangible losses and it
impacted profit by 20℅.According to Brand Finance, the brand
value of Maggi was anticipated to fall by approximately ₹13
billion.11 Nestlé’s stock fell by 15 percent, resulting in a market
capitalization loss of ₹100 billion.
 Inside the organization: Employees who are all involved in the
manufacturing of Maggie are sent to training and trade-building
activities.
 One supplier stated: “We were supplying around 200 tonnes of
spices per month to Nestlé. That has been affected. Now, we are
trying to find new customers, and in the future,we would try to
reduce large dependence on a single client.
 Comeback
 The Company should reposition its brand to recover all the losses
incurred in this allegation.
 The increased demand-versus-supply gap created by the Maggi
incident benefitted Patanjali Ayurved Limited (Patanjali), India’s
fastest-growing Ayurvedic company.
 Finally, the company enhanced the price to give tough competition
to other brands and recover all the losses incurred during the
allegations
 The promoters of Patanjali’s Atta Noodles claimed that the
upcoming product would be superior to Maggi, but would be sold at
only ₹15, compared to ₹25 for an equivalent size of Maggi.
Strategies
 Nestlé concentrated on three key options to re-enter the
Indian market: increase value with the same prices, increase
value with lower prices, or increase value with higher prices.
 Developed countries focus on fresh products on the other hand
country as India concentrate on semi-finished products and
India is the largest player for Maggi according to the latest
report In 2014, sales in emerging markets were growing at 8.9
percent as compared to only 1.1 percent in developed
countries.
 In the past, the company did such a psychological influence on
the minds of people in such away that whenever two minutes
pop up in the minds people majority of them are associating
with Maggi product.
Relaunching
 On 4 November 2015, all three NABL accredited
laboratories –mandated by the Bombay High
Court – find samples of the newly manufactured
Maggie noodles to be safe for consumption , with
lead content well within permissible limits .
 On 9 November 2015, the orders of the Bombay
high court have been complied with, Nestle India
has made Maggie available for sale once again .
QUESTIONS
 How would Nestle convince its stakeholders that
the relaunched Maggie was completely safe for
consumption and healthy for all consumers ?
 What strength including media sources and
celebrity endorsements, could Nestle draw from
to effectively re-position its brands?
THANK YOU