Return to Previous Page

Will Relaunch of Maggi Noodles into Indian Market be a Success?*

CASE STUDY, MARKETING MANAGEMENT
ET Cases - FLAME, 12 Pages
AUTHOR(S) : Sunit Taunk- PGPM Student, Nikunj Panchal- PGPM Student, Vinod M Lakhwani- Faculty - IBS, Ahmedabad

Case Preview

Will Relaunch of Maggi Noodles into Indian Market be a Success?

 

“This controversy has led to consumers losing trust in us. We do not put MSG in our products.”

– Paul Bulcke, Nestlé1 Global CEO

“We will come out with the big hitters first. That’s what consumers want. Then (we will) look at other opportunities, as time evolves and regulatory clarity (for product approvals) comes in.”

– Suresh Narayanan, Managing Director, Nestlé India2

 

After crossing all the hurdles, Maggi – The favorite fast food of Indian consumer’s palate was back into Indian market on the auspicious day of Dhanteras – November 9th 2015. The noodles were off from Indian market shelves for almost six months due to reported high content of monosodium glutamate (MSG)3 and lead in it.

The trouble began in March 2014, while doing routine quality checks FDA4 officials of Barabanki, Uttar Pradesh sent samples from batch of noodles manufactured in February 2014 for lab testing. The test revealed high amountS of MSG and that of lead. The permissible limit of lead was 0.01ppm5 to 2.5 ppm in noodles, but test results showed 17 ppm of lead. As a consequence, a notice was issued to the company for violating the rules. Nestlé challenged the reports and further sent samples to Kolkata lab whose results came in April 2015 coinciding with the earlier reports of FDA, Barabanki.......................

 


 1 Nestlé is a Swiss based global FMCG company.
2 Nestlé India is a subsidiary of Nestlé S.A. of Switzerland.
3 MSG is monosodium glutamate, a taste enhancer used in foods.
4 FDA is an acronym for Food and Drug Administration responsible for safety of food and drugs.
5 ppm is an abbreviation for parts per million, unit of measurement for mass of chemical or contaminant per unit volume of water.

Teaching Note Preview

Will Relaunch of Maggi Noodles into Indian Market be a Success?

 

Synopsis

Fast food or instant foods in packaged form during 80’s were not well-known. Nestlé identified the market for the same and launched Maggi instant noodles in 1983. No one ever had imagined that the product would be so successful that Nestlé’s presence in India would be recognized by just one brand. The recall value of Maggi noodles in noodles segment is unmatchable.

But on June 3rd 2015 this successful product suffered a hitch. Lead and monosodium glutamate (MSG) were discovered in Maggi noodles beyond permissible limits. The samples contained 17 parts per million (ppm) lead, while the acceptable limit was only 0.01 ppm. Food Safety and Drug Administration asked Food Safety and Standard Authority of India (FSSAI) to take action against Maggi. The outcome was that different states of India started banning Maggi sales in their territory. However after overcoming all hurdles, it was re-launched on auspicious day of Dhanteras – November 9th 2015.

The case deals with the various issues that were faced by Maggi, the steps that were taken by Nestlé India Ltd for damage control and also mentions how the Maggi noodles were re-launched into Indian market.

Case Positioning and Setting

The case can be taught to post graduate management students in subjects like Marketing Management, Brand Management and Business Strategy.


Concepts like creating customer value and customer relationship, competitive dynamics, creating brand equity and managing mass communication can also be taught through this case.

Learning Objective

The objective of the case is to make students understand crisis management, actions for damage control, impact of such crisis on overall performance of the organization and re-launch strategy of product.................

$4.57
Rs 0
Product code: MKTG-1-0065, MKTG-1-0065A

Abstract

Nestlé introduced Maggi noodles to the Indian Market in 1983 at a time when instant food was not popular and Indian customers were habituated to traditional dishes. But with its two minutes tagline and various ad campaigns it gradually became the favorite fast food of Indian consumer palate. The success became so much phenomenal that in local dialects it created a different food category separating itself from noodles, which Maggi brand actually was.

On June 3rd 2015, this successful product had a major setback. Maggi noodles were banned in New Delhi after it was discovered that lead and monosodium glutamate (MSG) were present in noodles beyond permissible limits. The trouble began, when in Uttar Pradesh while doing routine quality checks of the Maggi noodles, samples were found having high content of MSG and lead. The samples contained 17 parts per million(ppm) lead, while the acceptable limit was only 0.01 ppm. As a result Food Safety and Drug Administration asked Food Safety and Standard Authority of India (FSSAI) to take action against Maggi. The outcome was that many Indian states started banning Maggi sales in their territory. However after overcoming all hurdles, Maggi was re-launched on auspicious day of Dhanteras – November 9th 2015.

This case study lets the students understand the various issues that were being faced by Nestlé when it was alleged for not meeting the safety and quality guidelines. It also covers the several steps taken by Nestlé India Ltd. for damage control, assurance given to the consumers about the safety of noodles and the reputational along with financial loss incurred to the company due to this controversy. Lastly, it discusses about the re-launching of Maggi noodles and the road ahead.

Pedagogical Objectives

The objective of developing this case study is to make students understand about handling of crisis management, various actions taken for damage control, impact of such crisis on overall performance of the organization and re-launch of product. This case study can be used to teach various concepts of Marketing Management and Business Strategy subjects.

Case Positioning and Setting

This case study can be appropriately used in undergraduate as well as post graduate management programs for Marketing Management, Brand Management and Business Strategy courses. Concepts like creating customer value and customer relationship, competitive dynamics, creating brand equity and managing mass communication can be discussed using this case study.


* FLAME INTERNATIONAL CASE CONFERENCE 2016

This Case Pack Includes:
- Abstract
- Case Study
- Teaching Note (**ONLY for Academicians)
$4.57
Rs 0

Related products




Request for an Inspection Copy

(Strictly for Review Purpose, Not to be Used for Classroom Discussion/Trainings)