Maggi Staging for Comeback from 2015 Maggi Ban Crisis

CASE STUDY ANALYSIS
Maggi staging for comeback from 2015 Maggi ban crisis

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Submitted To
Prof. Payal Mehra


November 3, 2015

Submitted From:
Abhilash Chandra Pgp31001

1.0 Summary

This study takes an analytical look at analysis of background situation under which ban on Maggi instant noodles was imposed by food regulatory authority of India. Subsequent impact of Maggi ban was also studied as part of this report. Based on situational analysis, strategies and tactics have been recommended as a way to move forward. Recommendation not only gives insights about ways in which Maggi can make a comeback, but also on bolstering the position of Maggi noodles to face such crisis in future in an efficient manner.

2.0 Introduction

2.1 Background of the company

Nestlé India is one of the subsidiaries of Nestle S.A. of Switzerland. It began trading in importing and selling the final goods in India in 1912 as Nestle Anglo-Swiss Condensed Milk Company Ltd. Aassociation of Nestle and its large workforce along with 7 factories is not new but has been established over 100 years. Nestle made continuously big investments in India starting with Moga being the first investment in 1961, indicating that it was planning to build its customer base in India. Then came a pilot plant in Choladi in Tamil Nadu, designated for processing tea into soluble tea. Other factories came up in Nanjangud in Karnataka, Samalkha in Haryana & Ponda, Bicholim in Goa. Then 7th factory was set up in Uttarakhand in Pant Nagar

2.2 Case questions

• How will Maggi be able to make a comeback in the market
• How would Nestle be able to leverage the crisis and gamble on the Indian market

2.3 Purpose Statement

This report examines the reasons for ban on Maggi and gives some feasible solutions for the future concerning repositioning and revitalization of the brand. It offers situation analysis, recommended strategies, and implementations.

3.0 Analysis and Discussion

3.1 Stronghold of Maggi before the ban

Despite markets being filled with various fast food items, noodles remains as one of the most widely accepted and liked item of those. Maggi has brought out a change and has made this product to go to all kinds of classes including majority of urban household. Maggi has become synonymous with “noodle” word in India. In the early launch days in 1980’s, Maggi was giving away free samples of Maggi to school students on promotional trial basis. In Mid 1990’s there were some changes made to Maggi’s formulation. However the changes were rejected by majority of consumers and company returned back to its old product mixture.