Maggi Fiasco

Executive Summary:

Maggi has enjoyed being India’s favourite comfort food for decades. Post its introduction to the Indian Market in 1983, Maggi has created a new category of ‘home-made’ fast food – something so easy that can be made by anyone of (cooking) age and so tasty that it beats the temptation of ‘junk’ food alternatives. It has long since been a favourite of mothers who pride themselves with being able to provide a ‘quick, tasty and healthy’ snack, and also of children/boarding school/ hostel residents as a quick, midnight snack. Overall, the present Generation X and Y regards it as a favourite comfort food, something that they have grown up with and something that reminds them of home.

Of late, the ban on Maggi and its variants has left these loyal consumers feeling confused, disappointed and cheated, when the unhealthy aspect of the snack was brought to light. This report attempts to throw some light on the series of events that ensued, how Maggi reacted to the fiasco and how better they could have handled the situation.

1.0 Introduction: Positioning Maggi in the Indian Market

Maggi Noodles was first launched in India in Delhi in January 1983 by Food Specialties Ltd (associated with Nestle). Being the first of its kind and an instant hit with perennially overworked mothers and infinitely hungry children, Maggi enjoyed a 90% market share for the decade post its introduction. Also nicknamed the ‘third staple’ of India after wheat and rice, Maggi is responsible for 30% of Nestle’s revenue in India (upwards of Rs. 15bn) in annual sales, 2015, making India the largest market for instant noodles.

What built the foundation of such an enduring relationship? The Maggi phenomenon of 1983 disrupted the very idea of cooking – spending long hours in the kitchen in the heat of the stove, with complicated recipes: The idea of cooking in two minutes (not literally – the Indian definition ranges to up to 20 minutes) had a profound effect on the culture that had invented slow food much before it caught on in fast food cultures. Its initial advertising campaign settled itself into people’s lives with its liberating message for a working woman: there is no need to sacrifice your work-life balance to feed your kids with healthy food. Thus, the "Maggi Mom" was not only seen as caring for her children as her mother was of her, but she was also able to juggle her workplace and domestic responsibilities as well. It capitalized on the then newly emerging demographic in the mid-80’s in India with the value and trust that Nestle upheld. Thus, “Maggi used to belong to the working woman and her brood of happy, hungry children (who in the early commercials are smiling aggressively and chanting for “Maggi Maggi Maggi” with frightening vehemence)” (Exhibit 1).