maggi case study with solution pdf

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Maggi Case study: The 2015 Maggi crisis

If you’re reading this, we’re sure in your lifetime you would’ve had a pleasure of sparing those controversial two minutes to cook a Maggi and another few to eat it. We’ll never know how those advertisements manage to cook their Maggi in two minutes. Anyway, we’re not here to question the two-minute proposition of our most loved Noodle brand and rather to discuss a controversy that happened in 2015. Which has become the famous Maggi case study, a case study that teaches you how to emotionally connect well with your consumer.

Before you learn about the controversy – here’s a quick intro to the brand: Maggi was introduced in India by a Global FMCG company called Nestlé in 1982 and over this time, until 2015 the brand captured 60% of the noodle market in India . Maggi was in every nook of the country, this was because of how affordable, portable and instant these noodles are.

However, as all good things come to an end. Maggi faced a temporary ban in 2015, here’s the entire story for you (This post has a lot of videos, we’d recommend you at least watch the last few ones).

FSSAI is not very well known for surprise food inspections, however, April 2015 was different. FSSAI conducted a surprise Inspection for testing any possible food adulteration issue on Maggi’s manufacturing unit in the Barabanki district of Uttar Pradesh. The tested samples were sent to FSSAI labs and reports of higher than permissible levels of lead and the presence of Monosodium Glutamate(MSG) was released, these substances are banned to use for consumable products.

Naturally, Nestlé India Limited (NIL) appealed against the report and said MSG was a result of natural processes (it’s also mentioned on their website) and requested re-inspection of the products in the unit. Following this appeal, samples were sent to a government-authorized lab in Kolkata which only supported the findings of state FSSAI laboratory.

These reports led to several states banning sale and use of Maggi, obviously because of the health concerns. And unfortunately, on 9 th June, 2015, FSSAI (Food Safety and Standards Authority of India) i.e. the food regulator in India put a nationwide ban on sale on Maggi noodles for 5 months. Owing to this nationwide ban Nestlé recalled all the Maggi products from all the outlets and emotionally promised that they’ll be back in market as soon as the lab reports were clear. Almost 38,000 tonnes of Maggi was destroyed by Nestlé which worth Rs.320 crore.

Impacts of the ban:

The then brand Ambassadors of Maggi – Amitabh Bachchan, Preity Zinta, and Madhuri Dixit were slammed for endorsing the brand. Criminal cases were filed against them – yep, no joke. See here . Competitors: Top Ramen, Yippie, Patanjali Noodles started marketing their noodles healthy – we guess fats were not really unhealthy back then. Well, we can’t really blame them, 60% of the Market was now open for them to capture.

Things went south when the Government filed a case against Nestlé and charged Rs.640 crore for damages – Yikes! Nestlé posted its first loss in 17 years after the Maggi was banned. But worse, the consumers were now losing their trust in Maggi. Yep, FSSAI and the Government is all serious when it comes to your health – but the story wasn’t over yet.

And, the Return:

Surprisingly even when the Maggi was banned, it really wasn’t ready to give up on its consumers. The brand had an active social media page through which it stayed connected to its audience by the way of various social media posts and advertisements. Even on their Facebook page , they kept posting that their (consumers’) favorite food will be safe to consume very soon. There was a loyal set of customers that believed in Maggi and would occasionally post on their social media about how much they wanted their favorite noodles to return. Responding to them Maggi ran a campaign showcasing how they were missing their customers as well. They also created helpline numbers and FAQ pages for customers’ related queries.

In August 2015, the ban was lifted by the Bombay High court on the condition that it will be relaunched only after the reports are cleared by the FSSAI. And, in November 2015, when Nestlé got a nod from the food regulatory authority of India (FSSAI), it launched its WELCOME BACK campaign – an emotional campaign that won the heart of its consumers. They even launched 15 new variations of Maggi. They teamed up with e-commerce giants and started selling welcome kits which contained 12 Maggi packs. The response was great, the then e-commerce company Snapdeal sold 60,000 Maggi kits in just 5 minutes after the launch.

Learning from the Maggi case study:

All in all, this teaches at all that matters in end is the emotional connection you have with your customers. Unfortunately for Maggi’s competitors, they really did not achieve a lot during the ban. Maggi captured over 60% again in the next two years to come. And, this was the story of the crisis our favorite noodles faced – we hoped we killed it. You can write to us if you’d like any improvements.

Read more here . Stay safe, have a good one! Take a look at our page here for more case studies .

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4 thoughts on “ maggi case study: the 2015 maggi crisis ”.

Pingback: A study of Brand vs Customer-centric Marketing: KFC vs Maggi | CaseReads

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Very good and informative site thankyou for collecting valuable information…

I was really curious to know about what happened back in 2015, after my friend told me that Maggi was banned, the site helped me find the entire information about it.

Nestle India and its Revival:A Case study on Maggi Brand

The favorite and most preferred instant food product of children, Maggi Noodles, got entangled in its ethical issues of the ingredients being used. The safety of the consumers was found to be hazardous inclining us to give its detailed study with certain facts and figures. The study focuses on the causes of destructive positioning and its aftermath. The corporate social responsibility of Nestle India was tremendously cross-questioned with its after test results, by food regulatory authorities.The public relations of the Company got worsely affected with the issues stated. It made us to further focus on its repositioning state as well as its policies of managing the crisis period.

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Interal Res journa Managt Sci Tech

This paper defines conceptual creative concepts what is known as " ambient " or alternative " media which stays for longer period in the minds of the consumers. Modern marketing campaigns manifest themselves through multiple communication channels, and ambientadvertising is a convenient way of grouping the more unusual of these channels to distinguish them from more traditional vehicles like TV and Print Media stunts and Guerrilla marketing. This unique and unusual approach of Ambient Advertising Media on how consumers are induced to interact with AIDA principles of advertising. An Advertisement is an admirable piece of work which attracts the Attention, Interest, Desire and Action (AIDA) from its buyers. Needless to say, the best advertisement obviously leaves an indelible impact on consumers to use the product or service for rest of their life. In the highly competitive field of media, and currentlymarketingcommunication scenario is undergoing the rapid change. One can say Ambient Advertising which is relatively new and unique media in India reflects many factors in increasing cost-effective " Breakthrough " communication.For this unique media world is an advertising stage for its display or installations. The placement of Ambient Advertising is unusual and at unexpected locations often with unconventional methods of execution and being first or only advertisement to do so. Ambient Advertising is almost any kind of " OOH " (Out-of-Home) media which includes placing of advertisements or messages on sides of cows,, laser projecting and even pressed into the sand on beaches. Uniqueness, creativeconcepts, novelty and timing are key themes in Ambient Advertising to hit the target audience compared to the Traditional Advertising approach. Yet, Ambient Advertising is relatively unexplored fully in India by the advertising or design studios. Introduction: The term advertisement has been derived from the Latin word, " advert ere " which means to attract the attention towards something. Apparently, this has been en-cashedby the present day advertisers. The advertisers/marketers, in order to sell their products much easily and efficiently, make use of advertisements. With the rise intechnology-Electronic Media, Print Media and Broadcasting Media and craze among the crowd have paved way for more and more advertising. The advertisers/marketers/sellers are finding ways to sell their products effortlessly and proficiently. A few seconds of advertising commercial should be able to fix into the minds of the people that even after a week or a month,it should persuade them to go for the product. That should be the kind of advertisements one must show.Runningthe advertising campaigns for how long is not important but how creativeitis and what impression it leaves on the consumeris veryimportant.

Journal ijmr.net.in(UGC Approved)

The goal of this research is to comprehend the influence of ban of Maggi noodles over consumer behavior and consumer shift. Maggie was banned in 2015 due to abnormal amounts of monosodium glutamate, and also up to 17 times lead that is safe for consumption and returned to market five months later. In this paper, the authors identify the response of consumers towards the relaunch of Maggi by developing hypothesis and using statistical tools. Findings of the study indicated that ban had a significant negative influence on consumer buying behavior and a major influence on consumer shift. Taste, quality and price are the most prominent factors that affect purchase decision according to this study. This study gives the significant discoveries of a survey led among several customers of Maggie to discover their state of mind towards its relaunch after the major controversies.

Bonfring International Journal

This study analyzes the effects of misleading celebrity endorsements on consumer's behavior in India. Celebrity endorsement is now a trend in India and is considered as one of the most powerful tools for product markets and brand building in this competitive era as stars are idolized and looked up in a country like India. The goal of every endorser is to convince the consumer that the said product will obtain the same result as the endorser, which plays a huge role in consumer's behavior. Previous studies have also showed that by making use of luminaries could upsurge the rate of acceptance among consumers towards a specific product. Misleading endorsements by these celebrities violate numerous rights of the consumers such as the right to information, choice, protection against unsafe goods and services as well as from unfair trade practices. To achieve the purpose, we choose to conduct a case study on Nestle's Maggi noodle brand to discuss, analyze and to draw conclusions. Finally, we have concluded that celebrities featuring in such commercials making false claims are accountable for their acts.

20 What Went Wrong? A Case Study on Nestle Maggi Noodles

Published: June 2022
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Nestle’s ‘Maggi brand noodles’ the trusted and valuable food brand in India is the favourite among all the children in the country. It was considered as snacks in many households and a basic diet in many other homes. But in the recent past, the ban on Maggi has created a negative impact of Nestle. The favourite and most preferred instant food product of children, Maggi Noodles, got entangled in its ethical issues of the ingredients being used. The corporate social responsibility of Nestle India was tremendously cross-questioned with its after-test results, by food regulatory authorities. The case study is an effort to explore the various issues, possibilities, and opportunities for Maggi. The study focuses on need and scope brand image and brand repositioning, brand extension, etc.

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Nestle's Maggi: Pricing and Repositioning a Recalled Product

By: Neeraj Pandey, Gaganpreet Singh

Length: 9 page(s)
Publication Date: Jun 7, 2016
Discipline: Marketing
Product #: W16344-PDF-ENG

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In June 2015, the Indian food regulatory body, the Food Safety and Standards Authority of India, declared Nestlé's brand of noodles, Maggi, unsafe for human consumption. Tested samples showed excess levels of lead and added monosodium glutamate. To retain the trust of consumers, Nestlé recalled Maggi from all store shelves in the country. Management was then grappling with an improved re-positioning strategy to help Nestlé retain its considerable market share in India. The other issue that Nestlé needed to resolve was what role pricing would play in influencing consumer purchase decisions during the proposed product relaunch.

Neeraj Pandey is affiliated with National Institute of Industrial Engineering. Gaganpreet Singh is affiliated with National Institute of Industrial Engineering.

Learning Objectives

This case is designed for graduate and undergraduate management courses, especially in relation to the concepts of pricing, product management, and brand management, as well as in discussions of segmentation, targeting, and positioning. The case is also suitable for course packs in marketing management, pricing, and strategic marketing. After completion of this case, students should be able to understand the role of pricing in the relaunch of a product; understand the strategic pricing pyramid to set pricing for a product; understand prospect theory in terms of pricing; understand how prospect theory influences buyer perception; draft a new value communication strategy for a product; and discuss the importance of educating the target customer through the media and how to lobby lawmakers and regulatory authorities

Jun 7, 2016

Discipline:

Geographies:

Industries:

Food industry, Retail trade

Ivey Publishing

W16344-PDF-ENG

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COMMENTS

Maggi Case study: The 2015 Maggi crisis
The Ban: FSSAI is not very well known for surprise food inspections, however, April 2015 was different. FSSAI conducted a surprise Inspection for testing any possible food adulteration issue on Maggi’s manufacturing unit in the Barabanki district of Uttar Pradesh.
(PDF) "MAGGI" NESTLÉ's SUSTAINABLE BRAND -A CASE STUDY "MAGGI
Abstract Today "Maggi" being the flagship brand of Nestlé has come through a path of thorns and stones. It had to undergo turmoil and struggle to emerge into a sustainable brand. The brand as a...
(PDF) Maggi Noodles: Ban and Revival
This case is a study of ban and revival of the famous Maggi Noodles in India. The Maggi controversy broke the trust of many consumers because MSG (Monosodium Glutamate) and Lead were...
(PDF) Nestle India and its Revival:A Case study on Maggi
Nestle India and its Revival:A Case study on Maggi Brand Interal Res journa Managt Sci Tech The favorite and most preferred instant food product of children, Maggi Noodles, got entangled in its ethical issues of the ingredients being used.
What Went Wrong?: A Case Study on Nestle Maggi Noodles
Cite Permissions Share Abstract Nestle’s ‘Maggi brand noodles’ the trusted and valuable food brand in India is the favourite among all the children in the country. It was considered as snacks in many households and a basic diet in many other homes. But in the recent past, the ban on Maggi has created a negative impact of Nestle.
Nestle's Maggi: Pricing and Repositioning a Recalled Product
Overview Included Materials Related In June 2015, the Indian food regulatory body, the Food Safety and Standards Authority of India, declared Nestlé's brand of noodles, Maggi, unsafe for human consumption. Tested samples showed excess levels of lead and added monosodium glutamate.