Maggi case. Will Maggi Bounce Back? Would Nestle be able to Leverage the crisis and Gamble on the Indian Market? Prepare a case study. It should include the following: Summary/ Introduction/Background/ Situation/ Impact/ Discussion/ Recommendations/Way forward
Summary
Nestle India’s popular 2-minute noodles Maggi accounted for 60% of the noodle sales in 2014. In 2015, Nestle faced the biggest hit after Maggi was recalled by FDI, after tests showed high levels of lead and MSG in the noodle. The tests conducted in other countries did not find the levels unsafe and recently the Bombay High Court struck down the nationwide ban questioning the test results. By analysing the situation it’s hard to say where the fault lies. Were there really unsafe amount of lead and MSG in the noodle? Were they framed? The way Nestle responded to the situation, was it wrong? What else could Nestle have done? What should Nestle do bring Maggi back? This case study will show how the situation developed, how Nestle dealt with it, and also how Nestle handled the customer’s queries. The case will also have recommendations on how to bring back Maggi to the customers’.
Introduction
Background
Nestle first entered the Indian market by setting up a milk factory in 1961. Nestle India Limited introduced the Maggi brand to Indian consumers by launching Maggi 2 Minute Noodles, an instant food product in 1982. At that time they were trying to create a new food category of instant noodles especially targeting working women. But it failed and later on through survey they found out that children are the ones that like the taste the most. There onwards they started targeting the children and was able to become the most successful brand in the instant noodle category.
In 2001, Maggi became the core brand for Nestle India with a market share of 90% in instant noodle category. They produced various types