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Case Study

This document provides a case study on the Maggi noodles controversy that occurred in India in 2015. It summarizes the history and marketing strategy of Maggi noodles in India. It then describes the controversy where Maggi noodles were found to contain excessive lead levels, resulting in a nationwide ban and recall of Maggi products. This caused significant financial losses for Nestle India. After making product changes, Maggi later relaunched with a repositioned brand identity focusing on customer nostalgia and emotions.

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aishwarya
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605 views16 pages

Case Study

This document provides a case study on the Maggi noodles controversy that occurred in India in 2015. It summarizes the history and marketing strategy of Maggi noodles in India. It then describes the controversy where Maggi noodles were found to contain excessive lead levels, resulting in a nationwide ban and recall of Maggi products. This caused significant financial losses for Nestle India. After making product changes, Maggi later relaunched with a repositioned brand identity focusing on customer nostalgia and emotions.

Uploaded by

aishwarya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MAGGI NOODLES CONTROVERSY-

CASE STUDY

MADE BY-
Aishwarya Jagtap (18021)
Akash Katore (18029)
INTRODUCTION
 Maggi brand started with humble beginnings in the late
19th century in Switzerland.
 Started by Julius Maggi, who later launched Maggi
ready-to-use soups in 1886.
 Later in 1947, when the brand spread swiftly nestle
bought it in 1947.
 Nestle in India known as nestle India limited(nil)
launched the Maggi noodles.
STDP
Segmentation:
 5-40 age
 Eating habits
 Usage rate- Medium
 Loyalty- split loyal
Targeting:
 Mothers
 People on the move
Positioning:
 Food that is easy to cook and healthy to eat
Differentiation:
 A complete different product, Taste maker
Marketing Mix For Maggi Noodles
Product
• MAGGI Noodles is one of the largest & most loved snack
food brands that defines the Instant Noodles category in
India.
• The quality of the product is high in its segment
• Its available in variable size
• Maggi is a convenience goods- Staples
• One of the most trusted brand
Marketing Mix For Maggi Noodles

Place
• Maggi noodles is available in urban areas and covering
rural area to certain extend
• Available at number of small retail shops and
supermarkets
• It is a Level 3 type product
• It is placed in Snacks category
Marketing Mix For Maggi Noodles
Price
• Value pricing- Low price for high quality offering
• Maggi has a Quantity discount
• Survival objective – Price is kept constant so it is
affordable by all
• It is priced as a snack not as meal
• It follows a pull strategy
Marketing Mix For Maggi Noodles
Promotion:
• TV commercials play an important part
• The ‘two minutes’ promise, which started off as an USP.
• “The mother and child are the celebrities for Maggi,”
• Distributing free samples.
• Direct marketing in Schools and malls
ABOUT THE CASE
 In May 2015, India witnessed a nation wide food scare,
one of kind in the history.
 Since Maggi says ‘No Added MSG’ on the packet.
(Monosodium glutamate)
 On March 30, 2014, a Maggi sample was sent for test in
Gorakhpur, Uttar Pradesh and the lab analyst found
samples of lead and MSG.
ABOUT THE CASE
• where illegal levels of lead (at 17.2 ppm against the
allowable limit of 2.5 ppm) were found.
• Lead to a recall of Maggi products in the north Indian
state of Uttar Pradesh in June 2015
• As the company still was confident on their claim about
MSG.
• Nestle held a press conference after testing 125 million
packets that are safe
• FSSAI had ordered NIL to withdraw all of Maggi instant
noodles from the market, terming them “unsafe and
hazardous” for human consumption
EFFECT ON COMPANY
 NIL destroyed Rs.3
billion worth of
Maggi noodles
 NIL sustained its
first quarterly loss in
17 years,
according to its
quarterly report for
the period ending
June 2015.
 Its top line for the
quarter had fallen
by 20% to Rs. 19.34
billion.
CHANGES HAPPENED AFTER THE CASE
 NIL India also appointed Suresh Narayanan as its MD
 In late August 2015, NIL had come up with short video
ads leveraging on nostalgia and emotional quotient
attached with Maggi instant noodles.
 In October 2015, Nestlé claimed that it had cleared
three lab tests mandated by a court in the western state
of Maharashtra
 would relaunch Maggi by November 2015.
 As Maggi geared for its relaunch
Brand Repositioning

The Swiss food major has also partnered with online


marketplace Snapdeal for selling Maggi.
They promoted Maggi by providing free samples from
their web site.
This time they didn’t came with any brand ambassador,
they use emotions of their costumers for repositioning their
brand.
SWOT analysis of Maggi
Strengths
► 1st Mover Advantage
► High Customer Pull
 Distribution Channel
 With rich history and financially stable parent company is
on the growing path.
Weaknesses
► Risk of Over Dependence
► Ill effects of Maggi
SWOT analysis of Maggi
Opportunities
► Brand Extension
► rural markets can also be penetrated with the innovative
strategies
► target the Restaurants chains by offering some
customized or special offerings
Threats
► Competition
► Negative word of mouth
THANK YOU

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