case study-maggie dispute
TRANSCRIPT
INTRODUCTION BY TEAM MEMBER’S
TEAM VISONEERS• PRAVEEN KUMAR BHOI• SAURAV KUMAR DASH• SURESH MOHANTY• MAYANK MAZUMDAR• CHAMAK CHOWDHURY• ARCHANA BORA• KARTIK ATHOTRA• YUSUF RAHMAN• AMIT KUMAR• AYUSH SINGH (LR)• UDITA DEWAN (LR)• SURABHI SANAN (LR)• TANAY MINOCHA (LR)
VISIONEERs
A look at the past Nestlé, a subsidiary of Nestlé S.A. (Switzerland)
formed its company in India and set up its first factory in 1961 at Moga, Punjab.
Presently it is the world's largest and most diversified food company.
Maggi holds a commanding position in the Noodles Segment with over 60% market share.
Maggi has a large fan following in the country and personalities such as Amitabh Bachchan have endorsed it in the past.
REASON OF CRISIS & POINT OF INITIATION
• Nestle ’s top most selling brand Maggi, the instant noodles brand was one of India’s most trusted and perchance the country’s most preferential comfort food ranked number 18, commissioned by WPP in 2014, with a valuation of $1,127 million sales.
• Ever since the controversy broke over allegations that it had lead and Monosodium glutamate (MSG) in excess of permissible limits and hence, unsafe to consume the loss to brand is unimaginable.
• Maggi had to draw stock worth nearly Rs. 320 crore from the shelves and had to pay Rs. 20 crore to a cement factory to burn the product .
CONTROVERSY- MEDIA COVERAGE
“Agra street food as dangerous as Maggi ” (India Today, 3rd June)
“Govt laboratory gives a clean chit to Maggi samples ” (Tribune India, 3rd June)
“I don't endorse Maggi Now: Amitabh Bachchan” (Indian Express, 4th June)
“Not just Maggi, this man has an eye on your cake and biryani too!” (HT, 3rd June)
INDIA’S RESPONSE
BEFORE AFTER
MARKET SHARE
Business Today, 1nd June
TOI, 15th May
Financial Express, 30th May
Indian Express, 4th June
NDTV, 4th June
Nostalgia strategy• Beginning #WeMissYouToo ,#MaggiMother and #WelcomeBackMaggi, the brand has taken yet another
emotional route to reach out to its customers with#NothingLikeMaggi.
• In a series of ads, the brand is telling the masses that the product is still the same and is still as special as it used to be before the controversy.
• After the Papa's cooking and Hostel video where the brand brushed up the Maggi memories of couples and hostellers, who basically survive on the snack item, it has now taken up the hungry siblings .
Conclusion
Maggi has lost the trust of many customers & rebuilding that trust will be a challenge for Nestle.
There is an immense window of opportunity for Maggi’s rival brands.
One can derive that the crisis will most certainly have an impact on Nestlé's revenue.
In a state of affairs where there has been a failure or error on the company’s part, then acceptance is the best way out. During the time of a crisis of such an extent, it is vital for Nestle brought Maggi back into the shelves after coping with the controversy and emerged out as global example of reviving the brand image.