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MAGGI CASE STUDY

Created by: Akshay


Avinash
Snigdha
Shree Ghosh
Utkarsh

BACKGROUND
Nestle Maggi, the most popular snack amongst
all age groups in every household
A snack which got launched in the 1980s ruled
the market without much competition(90%
market share)
The snack which had its heyday ended abruptly
this June 2015 because of its high lead and MSG
content in its Noodles
The FSSAI(Food Safety and Standard Authority of
India) asked Nestle to pullback 9 variants of their
Noodles off the rack

STORY FROM THE BEGGINING

Nestle founded in 1866 - Switzerland


Henri Nestle
Initially milk based baby food in
Switzerland
In1905 merged to become Nestle
and Angloswisscondensed milk
company in Europe and USA

1982 Nestle India Ltd. (NIL) entered


Indian market, introducedMaggibrand in
Indian packaged food
Being first mover, it lead till early 2000
2005 health conscious
consumers,Dalattanoodles + pulses
NIL offered culinary of products such as
noodles, soups, sauces, ketchups and
many more
What Xerox is to photocopier and Colgate
to toothpaste,Maggiis to noodles inIndia
Economic Times 2003

ADVERTISING STRATEGIES
Main target working women, children,
college students and travellers
Promotional campaigns in schools,
colleges and offices
Availability in different sizes and packs
Easy to cook and serve
Continuous introduction of new products
and flavours

https://www.google.co.in/search?
safe=off&hl=en&authuser=0&site=imghp&tbm=isch&source=hp&biw
=1517&bih=692&q=maggi+noodles+packet&oq=maggi+&gs_l=img.
3.8.0l10.1515.3423.0.8073.6.6.0.0.0.0.140.756.0j6.6.0....0...1ac.1.64.i

THE MAKING OF INSTANT


NOODLES

Source:

THE EFFECTS OF INGREDIENTS ON


HUMAN HEALTH
LEAD: It effects Liver, bones and kills brain
cells. It hampers brain development. It
doesnt get excreted out of the body, it
gets accumulated
MSG(Monosodium Glutamate): It is
patented product of Ajinomoto Co., and is
used as a flavouring substance. It is a
major factor for causing headaches,
sweating, chest pain, nausea and
weakness

CONTROVERSIES
18thMay :After testing samples in Uttar Pradesh,
theFSDA find that Maggi contains 17 ppm of Lead
19 20thMay: Social media erupts
21stMay :Nestle swings into damage control mode
25thMay:The Karnataka government plans to test Maggi
samples
30thMay:Uttarakhands FSDA collects samples of Maggi
and sends them to government labs to be tested.
30thMay 1stJune:Celebrities, Madhuri Dixit , Preity
Zinta and Amitabh Bachchan are summoned to courts

CELEBRITIES POINTED OUT FOR


ENDORSING

2ndJune :The Kerala government issues an order to


temporarily stop the distribution of Maggi
6th June : Nestles Decision to appoint APCO Worldwide
11th June : Nestle moves Bombay HC against ban on
Maggi

12th June : U.S. testing Nestle's Maggi noodles after


India recall
16th June : Nestle sees more than Rs 320 crore hit from
Maggi ban
17th June : Around 1,500 Workers Affected Across the
Country

IMPACT ON SMALL VENDORS

Sentiment Ticker for the brand MAGGI

WHAT CAN BE DONE?


Nestle(NIL) should extend their market for
culinary products like soups, sauces and
ketchups and other cooking aids.
Public Relations (PR) campaign to gain the
confidence of customers.
Compare Maggi issue with larger issues
plaguing the country
"Maggi is banned as it contains lead but
sale of tobacco, still continues as if it
contains proteins, minerals and vitamins"
"Ensure that water flowing out of every
municipal tap is potable, so that millions of
children dont suffer from diarrhea every
year."
"Fruits reaching the market are

THANK YOU!