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Relaunch of Maggi in India

By Group: C08

Maggi Noodles is one of the most sold products of Nestle India. The company is
currently in 59th year of its operations in India. Maggi being highly cherished by the
Indian market of all groups took a deep storm in existence due to an issue related to
presence of high lead than permitted levels even though the product package says,
‘No Added MSG’ labelled on it. In the autumn of 2015, the report circulated by
National food safety regulatory of India has ordered ban of Maggi noodle sales and
directed Nestle to withdraw the product. The issue went viral among the masses of
Indian population affecting their sentiment and trust with the brand. The flagship
product went up in flames and Nestle had to destroy 38,000 tonnes of its produce
and stopped its production in India. From commanding 80% market share in noodles
segment, the product went to absolute zero within a month, this even affected the
sales of other products of ketchups and beverages of nestle. Though the company
claims to follow all the safety regulations in production, the sales in the Indian
segment have drastically fallen down. This even affected the global market of Maggi
noodles in Nepal and Bangladesh affecting the company in revenue as well as
tarnishing its brand image.
The issue has opened the Indian market for other competitors. In the year 2016,
Nestle board and management have formulated a 3-year strategy with plan B to fetch
back its market share which was lost to global competitors and to re-establish their
brand image in the minds of Indian consumers. Suresh Narayanan, chairman and
managing director of Nestle India has come up with the strategy which tackled their
strategic issue which was at stake and Maggi reconquered 57% market by early
2017. Through the case analysis on the above-mentioned issues we want to highlight
on the below points,
1. What issues were at stake during the fall of Maggi in India?
2. Options they had, and the solution adopted by Nestle.
3. Action plan and the 3-year strategy plan adopted by Nestle India.
4. The future strategy for its Indian business and competitors.

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