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