Nestle India is one of the most Respected brand and amongst the ‘top wealth creators of India’. It is a subsidy of Nestle S.A. of Switzerland which produces a variety of products such as dairy products and nutrition, beverages, chocolates, confectionery and prepared dishes and cooking aids.
Nestle India’s Maggi noodles is one such product that has been the most sold product of the company in India. Nestle Maggi has nine different types of noodles which comprises of almost 70% of the instant noodle market. 2 years back a leading survey confirmed that Nestle India’s Maggi is the most favourite instant snack of the youth of India.
On 5th June 2015, the director of the company Mr. Suresh Narayanan awoke to possibly the worst nightmare of his life. The food safety department of India decided to ban the most famous instant noodles Maggi calling it unsafe and hazardous. After being under the scanner for various months, the food safety department of India found out that the instant noodles contains large proportions of taste enhancer called monosodium glutamate and lead. This was the biggest blow that nestle India had ever faced. They were ordered to take off all the stocks throughout the country which was worth Rs 320 crore. However Nestle appealed the court to retest the samples claiming it to be safe. After 5 months of ban, maggi was set for a comeback on 12th November 2015.
After facing a loss of Rs450cr, Nestle India had seen the first ever downfall in 20 years with a sales declination of 32.12% and a net profit loss of 60% in compare to the previous year.
GIVE UP ON GIVING UP
It was a very big challenge for the marketing department of the product to regain the trust in the consumers and make a comeback in the market. They had to rework on all Marketing strategies and plans which includes a lot of analysis.
During the ban, Nestle came up with a whole new SWOT ANALYSIS for Maggi.
The strength of the product remained the same with strong customer connect, financial support from the parent company and 1st mover advantage. There were new weaknesses and threats which were added in the new SWOT analysis of the product such as the negative word of mouth competition from local players, ill effects etc.
The company also came up with a series of advertisements which was a part of their marketing strategy which played around with nostalgia trying to recreate the memories amongst the audience trying to build an emotional bond with the customers which was a big success and went viral in very less time.
The social media team of the product flooded their facebook, twitter, instagram and various other social platforms with the new report of the tests, denying the false reports circulated by the food health department of India. Pictures quoting ‘coming soon’ were all over all the social media pages of the product. They also made creative replies for the consumers expressing their love to them like
Marketing mix consists of the 4P’s that are price, product, promotion and place which are very essential for a company to market and promote their product in the marketplace.
The new marketing mix of Maggi looked like this,
PRODUCT: There are a variety of Maggi’s available in the Indian market,
Maggi 2-minute noodles
Maggi vegetable atta noodles for the health conscious consumers
Maggi cuppamania, which are literally ready to eat.
Maggi multigrain atta noodles which contains more nutritious values.
The Basic product benefit is that it has good taste with improved nutritional levels.
The core benefit of the product is that it is easy to cook.
The price of the product is totally depended on the type of the Maggi. The Maximum price of a single packet of Maggi doesn’t costs more than Rs 12 that is 24cents. Nestle India also took initiatives to produce small packets of Maggi costing rs 2 and rs 4 for the lower class audiences in some of rural areas of the country.
Nestle India’s Maggi is available and spread across the country. It is available in almost all the supermarkets and retail outlets of the country. Nestle maggi has its production plant in Tahliwal in the state of Himachal Pradesh.
Advertisements with catchy taglines have been one of the best promotional strategies by the brand. Apart from this, price off’s, discounts and exchange offers are common promotional activities which are carried by the brand throughout the year. The brand has also signed famous bollywood celebrities as their brand ambassadors for the products credibility.
Maggi has been a leader in the past 2 decades dominating every other competitor in the market. It was maggi who educated the Indian consumers about noodles. Consumers will definitely try different products in the market for change, but it is really a task to changes ones taste bud as Maggi has been a generic in its name for its long presence in India.
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Marketing91. (2016). SWOT analysis of maggi. Retrieved from Marketing91: https://www.google.com.au/search?q=swot+analysis+of+maggi&espv=2&biw=1517&bih=692&source=lnms&tbm=isch&sa=X&ved=0ahUKEwj3uaHavo7OAhUCKpQKHaZqBzEQ_AUIBigB&dpr=0.9#imgrc=Y0yBjHYg0eFEAM%3A
Parth Manish Desai
Student Id: 216037056