Abstract:
The case provides an overview of Nestlé India Limited’s (NIL) branding strategy to revive itself post Maggi fiasco in 2015. The case explores the outcome of the Maggi Fiasco that took place in 2015. On June 5, 2015, Food Safety and Standards Authority of India (FSSAI) ordered Nestlé to recall all the Maggi noodles, from retail outlets throughout India, after the lead content in it was found to be beyond permissible limit. The case briefly discusses the Maggi crisis and further reviews the roots of the crisis. This controversy would have eroded the brand value by at least 30-40%, said brand specialists. Sales had dropped by at least 60-70%, believed retail analysts. So, it was very important for NIL to rebuild its brand value and market share and to regain customer trust in its brands
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Issues:
» Critically analyze the different branding strategies adopted by NIL for its products across different segments in order to build up its brand value and to revive market share in India, after the Maggi crisis.
» Study the process of portfolio management/expansion measures undertaken by NIL and draw comparisons between the marketing measures taken before and after the Maggi crisis.
» Understand how NIL came up with different marketing strategies (comprising a plan of activities for 3-4 years), so as to ensure its sustenance for the next few decades to come as a market leader.
Introduction
In 2016, Nestlé India Limited (NIL) , launched nearly 35 products within a span of just six months, probably the maximum number of launches in a single window for the company. From 2015 onward, the company’s top management had been focusing on reconstructing the Swiss company’s Indian unit by expanding the company’s portfolio. This was being done primarily to reduce the company’s dependence on Maggi Noodles post the fiasco in 2015, when Maggi was banned in several states of the country, after it was found that the noodles had lead content beyond the permissible limit.
Nestlé was founded in 1866 by Henri Nestlé in Vevey, Switzerland, where its headquarters are located. Nestlé's Indian operations began in 1912, when it began trading as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited. After India's independence in 1947, the economic policies of the Indian Government emphasized the need for local production. Nestlé responded by incorporating a company and setting up its first factory in 1961 at Moga, Punjab. From there, the company progressed to become one of the most reputed companies in India, with several brands spread across different segments.
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Key words:
Brand Equity,Portfolio Management,Marketing Strategy,Nestlé,NIL,Branding Decisions,Maggi,Crisis Management">
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