Maggi Noodles in India: The Revival Challenge
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Case Code: CLBS151 Case Length: 5 Pages Period: 2015 Pub Date: 2017 Teaching Note: Not Available |
Price: Rs.100 Organization: Nestle India Limited Industry: FMCG Countries: India Themes: - |
Abstract
The case discusses Maggi, an instant noodle brand of Nestlé India Limited (Indian arm of Swiss multinational, Nestlé) in the wake of high lead content findings in Maggi products and the subsequent chain of events which snowballed into the largest food scare the nation had ever witnessed. Further, the case reveals how Nestlé India responded to the fiasco and how the competition tried to capture the instant noodles market share in a situation where Nestlé India Limited had to take Maggi off the retailers' shelves.
Issues
This case study will help the students to:
- Debate on crisis management and communication strategy of organizations
- Revival course after a major setback in terms of losing customers’ trust in the product or brand
Introduction
The Maggi brand had its humble beginnings in a nutritional meals company started by Julius Maggi in the late 19th century in Switzerland. Julius, after whom the company was named, later launched Maggi ready-to-use soups in 1886. The brand spread swiftly across the world and caught the eye of Nestlé, which bought it in 1947.
Nestlé had had a presence in India through Nestlé India Ltd (NIL) since 1912. Introduced in the country in 1983, Maggi Noodles (Maggi), had no difficulty in making its way into the rising fast food culture. It went on to gain huge popularity among children and bachelors who preferred the snack over staple meals. Maggi Noodles were also served at roadside shacks and were a great favorite of students and people on the move. Maggi ads had a liberating message for the Indian women – the 'Maggi Mom' could juggle her professional and domestic duties because of the instant snack. The brand initially enjoyed a 90% share in the market it had created. By 2015, India was Maggi's largest market for instant noodles and the brand alone contributed 24% to NIL’s top-line....
Keywords
Crisis Management, Communication Strategy , FMCG, Maggi India, Nestle
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