nestle maggi noodles case study

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What Is a Case Study?

When you’re performing research as part of your job or for a school assignment, you’ll probably come across case studies that help you to learn more about the topic at hand. But what is a case study and why are they helpful? Read on to learn all about case studies.

Deep Dive into a Topic

At face value, a case study is a deep dive into a topic. Case studies can be found in many fields, particularly across the social sciences and medicine. When you conduct a case study, you create a body of research based on an inquiry and related data from analysis of a group, individual or controlled research environment.

As a researcher, you can benefit from the analysis of case studies similar to inquiries you’re currently studying. Researchers often rely on case studies to answer questions that basic information and standard diagnostics cannot address.

Study a Pattern

One of the main objectives of a case study is to find a pattern that answers whatever the initial inquiry seeks to find. This might be a question about why college students are prone to certain eating habits or what mental health problems afflict house fire survivors. The researcher then collects data, either through observation or data research, and starts connecting the dots to find underlying behaviors or impacts of the sample group’s behavior.

Gather Evidence

During the study period, the researcher gathers evidence to back the observed patterns and future claims that’ll be derived from the data. Since case studies are usually presented in the professional environment, it’s not enough to simply have a theory and observational notes to back up a claim. Instead, the researcher must provide evidence to support the body of study and the resulting conclusions.

Present Findings

As the study progresses, the researcher develops a solid case to present to peers or a governing body. Case study presentation is important because it legitimizes the body of research and opens the findings to a broader analysis that may end up drawing a conclusion that’s more true to the data than what one or two researchers might establish. The presentation might be formal or casual, depending on the case study itself.

Draw Conclusions

Once the body of research is established, it’s time to draw conclusions from the case study. As with all social sciences studies, conclusions from one researcher shouldn’t necessarily be taken as gospel, but they’re helpful for advancing the body of knowledge in a given field. For that purpose, they’re an invaluable way of gathering new material and presenting ideas that others in the field can learn from and expand upon.

Maggi Case study: The 2015 Maggi crisis

If you’re reading this, we’re sure in your lifetime you would’ve had a pleasure of sparing those controversial two minutes to cook a Maggi and another few to eat it. We’ll never know how those advertisements manage to cook their Maggi in two minutes. Anyway, we’re not here to question the two-minute proposition of our most loved Noodle brand and rather to discuss a controversy that happened in 2015. Which has become the famous Maggi case study, a case study that teaches you how to emotionally connect well with your consumer.

Before you learn about the controversy – here’s a quick intro to the brand: Maggi was introduced in India by a Global FMCG company called Nestlé in 1982 and over this time, until 2015 the brand captured 60% of the noodle market in India . Maggi was in every nook of the country, this was because of how affordable, portable and instant these noodles are.

However, as all good things come to an end. Maggi faced a temporary ban in 2015, here’s the entire story for you (This post has a lot of videos, we’d recommend you at least watch the last few ones).

FSSAI is not very well known for surprise food inspections, however, April 2015 was different. FSSAI conducted a surprise Inspection for testing any possible food adulteration issue on Maggi’s manufacturing unit in the Barabanki district of Uttar Pradesh. The tested samples were sent to FSSAI labs and reports of higher than permissible levels of lead and the presence of Monosodium Glutamate(MSG) was released, these substances are banned to use for consumable products.

Naturally, Nestlé India Limited (NIL) appealed against the report and said MSG was a result of natural processes (it’s also mentioned on their website) and requested re-inspection of the products in the unit. Following this appeal, samples were sent to a government-authorized lab in Kolkata which only supported the findings of state FSSAI laboratory.

These reports led to several states banning sale and use of Maggi, obviously because of the health concerns. And unfortunately, on 9 th June, 2015, FSSAI (Food Safety and Standards Authority of India) i.e. the food regulator in India put a nationwide ban on sale on Maggi noodles for 5 months. Owing to this nationwide ban Nestlé recalled all the Maggi products from all the outlets and emotionally promised that they’ll be back in market as soon as the lab reports were clear. Almost 38,000 tonnes of Maggi was destroyed by Nestlé which worth Rs.320 crore.

Impacts of the ban:

The then brand Ambassadors of Maggi – Amitabh Bachchan, Preity Zinta, and Madhuri Dixit were slammed for endorsing the brand. Criminal cases were filed against them – yep, no joke. See here . Competitors: Top Ramen, Yippie, Patanjali Noodles started marketing their noodles healthy – we guess fats were not really unhealthy back then. Well, we can’t really blame them, 60% of the Market was now open for them to capture.

Things went south when the Government filed a case against Nestlé and charged Rs.640 crore for damages – Yikes! Nestlé posted its first loss in 17 years after the Maggi was banned. But worse, the consumers were now losing their trust in Maggi. Yep, FSSAI and the Government is all serious when it comes to your health – but the story wasn’t over yet.

And, the Return:

Surprisingly even when the Maggi was banned, it really wasn’t ready to give up on its consumers. The brand had an active social media page through which it stayed connected to its audience by the way of various social media posts and advertisements. Even on their Facebook page , they kept posting that their (consumers’) favorite food will be safe to consume very soon. There was a loyal set of customers that believed in Maggi and would occasionally post on their social media about how much they wanted their favorite noodles to return. Responding to them Maggi ran a campaign showcasing how they were missing their customers as well. They also created helpline numbers and FAQ pages for customers’ related queries.

In August 2015, the ban was lifted by the Bombay High court on the condition that it will be relaunched only after the reports are cleared by the FSSAI. And, in November 2015, when Nestlé got a nod from the food regulatory authority of India (FSSAI), it launched its WELCOME BACK campaign – an emotional campaign that won the heart of its consumers. They even launched 15 new variations of Maggi. They teamed up with e-commerce giants and started selling welcome kits which contained 12 Maggi packs. The response was great, the then e-commerce company Snapdeal sold 60,000 Maggi kits in just 5 minutes after the launch.

Learning from the Maggi case study:

All in all, this teaches at all that matters in end is the emotional connection you have with your customers. Unfortunately for Maggi’s competitors, they really did not achieve a lot during the ban. Maggi captured over 60% again in the next two years to come. And, this was the story of the crisis our favorite noodles faced – we hoped we killed it. You can write to us if you’d like any improvements.

Read more here . Stay safe, have a good one! Take a look at our page here for more case studies .

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4 thoughts on “ maggi case study: the 2015 maggi crisis ”.

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Very good and informative site thankyou for collecting valuable information…

I was really curious to know about what happened back in 2015, after my friend told me that Maggi was banned, the site helped me find the entire information about it.

Maggi noodles Case Study

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Case Study | Maggi Ban – Crisis And Repositioning In India

Case Study | Maggi Ban – Crisis And Repositioning In India 6 min read

Maggi is a well-known brand that everyone knows. It is a brand that needs no introduction. Since 1947, the Nestle brand has included instant noodles, seasonings, and soups. Among all of its products, Maggi was the first to introduce protein-rich vegetable dinners to the market, followed by prepared soups. 1983 was a watershed moment in Indian history since it saw the introduction of Maggi instant noodles.

Maggi has typically remained in the spotlight for its flavor, and it has become the preferred snack of the majority of India’s people. Maggi, on the other hand, was in the news for a variety of reasons at one point in time. The major reason was poor promotional activity owing to the presence of monosodium glutamate (MSG) and dangerously high levels of lead in the packets examined by FSSAI . The customer’s trust was shaken as a result of this. As a result of this uproar, many parts of society were concerned due to the involvement in the health of children in this case.

In what way the commotion originated?

After the proximity of pesticides in soda, the Nestle Maggi two-minute noodles emergency has ballooned up as India’s most exceptionally awful nourishment concern. The uproar over Maggi, one of India’s most popular snacks, drew attention owing to rising consumer health concerns.

Maggi noodles were sued in India for alleged violations of food security standards following a test by a state government lab that discovered the presence of MSG (a chemical that Nestle stated it did not put to their item) or higher levels of lead. Regardless, they rejected these results, despite the fact that further testing by administrative labs in several states revealed conflicting results. Despite the company’s confidence in Maggi’s safety, the Delhi municipal administration imposed a ban, signaling that other state governments should follow suit.

The disappearance of Maggi was a significant disappointment for Indian customers who still had a soft spot for the product and were unable to let it go. The fall of Maggi was not caused by any external causes, but rather by the product’s inherent characteristics, such as an increase in lead content, which harmed customer health. Nonetheless, despite the product’s dramatic decline, Maggi survived. They turned this catastrophe into a learning experience for their future endeavors. Maggi recovered its shelf position by thoroughly rechecking its product and its components.

Maggi has held the market top position since its inception. However, Maggi’s fall phase saw the development of then-market followers contending for the position of market leadership.

The re-emergence of Maggi in the market drove its competitors to second place, recovering and retaining market leadership due to the overall influence that it has always had on the Indian market. Nestle has been on a firefighting strategy since the Maggi disturbance became press headlines, by making this crisis scenario a point of learning for their future endeavors. Without a doubt, the brand’s reputation was harmed; it took some time for the brand to restore its strength and return to the shelves, leaving all of its competitors in the dust.

Discussion of Maggi

Pre-ban period

From the government to law enforcement, there was an all-out onslaught against Maggi. The government of India has filed a claim for damages from settle after allegations of excessive lead and MSG (a flavor enhancer) in Maggi prompted a nationwide inquiry. They become heated up over Nestle Maggi 2-minute noodles being hailed as India’s worst nourishment apprehension in ten years, following the presence of chemicals in soda pops. It was a real issue of general wellness, and the legislation allows us to take self-made legal steps against blundering’s elements official from the national purchaser question redressal commission.

Following recurrent quality testing and meetings with settle supervisors, the Food Safety and Standards Authority of India (FSSAI) ordered a nationwide assessment of the Maggi.

Reporting of the issue in social media

As the feud between Nestle and the FSSAI heated up, TV channels, newspapers, and other social media platforms in India gushed over Maggi as if it were one of the year’s greatest stories. News stories were released with headings such as, “Maggi under regulatory scrutiny for lead, MSG above permitted limits; Maggi treachery has crushed our good Indian hearts; Maggi demonstrates Indian customers are taken for granted,” and so on. The emotional connection with Maggi at its customer interaction, along with the uproar over contradicting test results and the public’s lack of awareness about food regulations, gave the media a chance to sway public opinion. Maggi was subjected to a media trial prior to its seizure.

Just as conventional media reported the topic widely, social media exacerbated it. The growth in the dominance of social media players such as Facebook and Twitter has aided in the transmission of news, regardless of its validity. This has apparent ramifications for Nestle: a heated debate on a contentious topic might spread quickly. Maggi sales have dropped, with big metropolitan stores reporting a 15% to 20% drop. Nestle India’s shares plummeted 15% between mid-May and early June.

Nestle Maggi has been in firefighting mode since the news broke about unsavory additives in Maggi. The brand’s reputation suffered greatly as a result. Maggi noodles sales have suffered significantly when it was discovered that the samples examined by government laboratories included unnecessary substances such as lead and MSG. Because of the Maggi prohibition, the manufacture of Maggi ceased, affecting suppliers. Around 1500 people in India involved in the production of Maggi were impacted by the suspension of production following the Maggi ban. The impact of Maggi’s demise was felt by the stock market as well.

Maggi has long been one of India’s most popular snacks. It was typically kept in the news for its flavor. During the prohibition time, the organization did not dismiss any of its changeless laborers but rather engaged them in various activities like planning, group development, and so on.

However, it should be noted that definite procedures, values, and ethics have varied meanings for different types of businesses. Maggi has long been a market leader, accounting for 80 percent of the consumer market. Market leaders are frequently perceived to be able to create their brands and utilize their brands based on well-defined procedures within the company in order to persist.

Relaunch of Maggi

On October 26, Nestle resumed assembling Maggi noodles, which entered the market after receiving approval by food testing labs. Nestle reintroduced Maggi noodles to the market after the Bombay High Court removed restrictions on all nine Maggi varieties.

Within seven days of Nestles Maggi noodles being reintroduced to the market, the nation’s main nutrition controller – FSSAI – moved the supreme court against the Bombay high court’s order that allowed the noodles to be reintroduced. However, it should be noted that Maggi passed the first round of testing on October 16, 2015, allowing Nestle India to continue manufacturing the item. The second round of tests on newly manufactured groups also declared the item safe for human consumption. At regular intervals, a few Maggi samples were tested.

Snapdeal sold 7,20,000 units of Maggi noodles (twelve-packs) at its debut, with 60,000 units sold (welcome unit). These well-received packages included a Maggi date-book 2016, a Maggi ice chest magnet, Maggi postcards, and a welcome return note. It quickly grew to 3.9 million retail locations.

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Nestle India Maggi Noodles Ban Case Study Solution

Introduction:.

The project titled “A case study of India’s favorite’s instant noodles-MAGGI, a product of Nestle India Pvt. Ltd.” deals with the study of the case of MAGGI ban, which happened in 2014. The project report mainly deals with the impact of ban on NESTLE’s financial results for the year 2014 and 2015. Also it studies the marketing and promotional strategies that are adopted by NESTLE India Limited post ban. The long term success of any company can be effectively measured in terms of brand value it creates in the market place, but more than that it is the brand image in the consumer’s heart which matters the most. The unique selling proposition of a particular product has to be the impact on environmental, social and human health criteria.

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Objectives of The Study:

Limitation of The Study

Research Methodology:

Research comprises “creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of humans, culture and society, and the use of this stock of knowledge to devise new applications. It is used to establish or confirm facts, reaffirm the results of previous work, solve new or existing problems, support theorems, or develop new theories. Research methodology is a systematic way to solve a problem. It is a science of studying how research is to be carried out. Essentially, the procedures by which researchers go about their work of describing, explaining and predicting phenomena are called research methodology. It is also defined as the study of methods by which knowledge is gained. Its Aim is to give the work plan of research. Data collection would basically mean systematic collection of data from various sources for undertaking a research. Data is the basic inputs for taking any decisions.

Methods of Data Collection:

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Nestle S.A. is among the largest consumer packaged goods companies in the world, founded and headquartered in Vevey, Switzerland. Nestle originated in a!905 merger of the Anglo-Swiss Milk Company, which was established in 1866 by brothers George Page and Charles Page, and the Farinc lactee Henri Nestle Company, which was founded in 1866 by Henri Nestle, whose name meant “Little Nest”. The company grew significantly during the First World War and following the Second World War, eventually expanding its offerings beyond its early condensed milk and infant formula products. Today, the company operates in 86 countries around the world. NESTLE is the world’s leading Nutrition, Health and Wellness company. Our mission of “Good Food, Good Life” is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. The Company was founded in 1866 by Henri Nestle in Vevey, Switzerland, where our headquarters are still located today. We employ around 2, 80,000 people and have factories or operations in almost every country in the world. NESTLE’s relationship with India dates back to 1912, when it began trading as The NESTLE Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. After India’s independence in 1947, the economic policies of the Indian Government emphasized the need for local production. NP’! STLF responded to India’s aspirations by forming a company in India and set. Up its first factory in 1961 at Moga, Punjab, where the Government wanted NESTLES to develop the milk economy. The Company’s activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. NESTLE India manufactures products of truly international quality under internationally famous brand names such as NESCAFE, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLE Milk, NESTLE SLIM Milk, NESTLE Dahi and NESTLE Jeera Raita.

Nestle’s Presence in India :

After more than a century-old association with the country, today, NESTLE India has presence across India with 8 manufacturing facilities and 4 branch offices. NESTLE India set up its first manufacturing facility at Moga (Punjab) in 1961 followed by its manufacturing facilities at Choladi (Tamil Nadu), in 1967; Nanjangud (Karnataka), in 1989; Samalkha (Haryana), in 1993; Ponda and Bicholim (Goa), in 1995 and 1997, respectively; and Pantnagar (Uttarakhand), in 2006. In 2012, Nestle India set up its 8th manufacturing facility at Tahliwal (Himachal Pradesh). The 4 Branch Offices located at Delhi, Mumbai, Chennai and Kolkata help facilitate the sales and marketing activities. The NESTLE India’s Head Office is located in Gurgaon, Haryana.

Competitors of Nestle MAGGI:

Maggi instant noodles, foods major Nestlé’s flagship brand that has dominated the Indian instant noodles market for nearly three decades, is losing market share on a monthly basis to newer entrants such as Patanjali Noodles, GlaxoSmithKline’s (GSK) Horlicks Foodies, Hindustan Unilever’s (HUT.) Knorr Soupy noodles, Big Bazaar’s Tasty Treat, Top Ramen and several other smaller players.

The Nestle MAGGI BAN – Case Study Solution:

It all started back in march 2014 in Uttar Pradesh, where the authorities informed nestle that MSG was detected in a sample of MAGGI Noodles that carried a “No added MSG” claim on the pack. In the first half of 2015, Nestle India decides to temporarily stop selling MAGGI Noodles in India until the situation with the authorities is resolved. The Food Safety and Standards Authority of India (FSSAI) issues an order to Nestle India which includes, among others, the:

In June 2015, Nestle India files a legal petition with the Bombay High Court, seeking a judicial review of this order. While legal proceedings arc ongoing, Nestle continues to comply with the FSSAI order and destroys over 35,000 tonnes of the product, though the Bombay High Court allows Nestle India to continue exporting MAGGI Noodles. As the year passed, in the second half of the year in August 2015, The Bombay High Court overturns the government’s ban on MAGG3 Noodles, arguing that the move was “arbitrary” and “that principles of natural justice were not followed.” The court rules that Nestle India can bring the product back to the market if fresh tests – conducted in three accredited laboratories on the existing samples and subsequently on the freshly manufactured product – find the product safe.

In October 2015, Test results from all three laboratories mandated by the Bombay High Court show MAGGI Noodles to be safe, with lead content well within the permissible limits. In compliance with the orders of the Bombay High Court, Nestle India commences manufacturing MAGGI Noodles and submits the new batches for fresh tests to reconfirm they are safe for consumption. In November 2015, All three NABL (National Accreditation Board for Testing and Calibration Laboratories) accredited laboratories – mandated by the Bombay High Court – find samples of the newly manufactured MAGGI Noodles to be safe for consumption, with lead content well within permissible limits. Now that the orders of the Bombay High Court have been complied with, Nestle India has made MAGGI Noodles available for sale once again.

The Burnt From Maggi:

Affected by a countrywide recall and destruction of its instant noodle brand, Maggi, India’s largest food company by revenue, Nestle India, posted its first quarterly loss in 17 years. The Indian subsidiary of the world’s largest food company reported a Rs 64.4-crore net loss in what was its most challenging quarter to date. Thanks to the recall and ban of Maggi on June 5 (trouble for it began towards the end of May when sales began falling after detection of contaminants in some of the product’s samples), the company took a one-time charge of Rs 452 crore which hit its bottom line.

Market Share/ Share Price:

Nestle India’s nine variants of Maggi noodles accounts for nearly 70% of the instant noodles market, which took a massive hit when a blanket ban was imposed on the product. After the ban was imposed on June 5, the company’s share price tanked. On June 8, three days after the pan-India ban was imposed, Nestle India’s share price was down to Rs 5,539.8, the lowest level it had seen all year. Since then, the company’s scrip has seen major volatility, regaining the highest level since the ban at Rs 6,831.95 per share on August 5. On the date, Goa deputy chief minister Francis D’Souica had said that he favored the re-think on the Maggi ban after the latest tests conducted by a central government laboratory in Karnataka found the instant noodles safe for consumption.

Profits / Sales:

Nestle added while releasing its results that the June quarter of this year was not comparable with the corresponding period last year. “Results for the quarter have been affected by the Maggi noodle issue,” it. said in its statutory statement. “Recent developments and growing concerns about the product had led to an environment of confusion, leading to the product being temporarily taken off shelves,” the company said. “Without question, trust has been hit and for Nestle to win that back will not be easy,” a senior industry executive from a rival company said. “While Maggi contributed some 22 per cent to the company’s revenue in 2008, it is now at 30 per cent,” this executive said. “In the same period, revenue contributions of Nestle’s ‘chocolate & confectionery’ and ‘beverages’ businesses have together come down to some 25 per cent from 32 per cent,” he added. As things stand today, Nestle India derives 46 per cent of its revenues from milk products and nutrition, 29 per cent from prepared dishes and cooking aids, 13 per cent from beverages and 12 per cent from chocolates.

The Corporate Affairs Ministry imposed a nearly-Rs 640 crore fine on Nestle India, in lieu of finding MSG and lead beyond the permissible limit in Maggi noodles. The government filed a Rs 640-crore class action suit before the consumer forum National Consumer Disputes Redressal Commission (NCDRC). Out of this Rs 284.45 crore was sought in basic damages, and another Rs 355.5 crore in punitive damages. However, the government had said that the penalty could go higher as it was still calculating further damages to be sought.

Management:

Nestle India’s managing director Etienne Benet was called back by the parent company on July 24. On August 1, Suresh Narayanan was appointed as the company’s new managing director. On Thursday, after announcing the Jul-Sep results, the company’s board appointed Narayanan as the company’s chairman too. The move came after Nestle India’s chairman Antonio Helio Waszyk retired on October 1.

Operations:

Nestle India shut down Maggi production at all of its eight production units in India. However, since the ban was set aside, Nestle India has started production at three of the eight factories. and wants to start production at all the factories soon. “We have resumed manufacturing of Maggi Noodles at three of our plants, at Nanjangud (Karnataka), Moga (Punjab) and Bicholim (Goa),” said a Nestle India Spokesperson.

Advertising:

With the ban now kept aside and Maggi cleared for production, Nestle India is gearing to relaunch the instant noodles. For this, the company has said that it. Will be advertising aggressively, increased its spending on TV commercials. During the ban, Nestle India had come up with a series of advertisements to the theme #WeMissYoutoo.

Marketing Strategy By Nestle Post Ban:

In today’s world of citizen journalism, news goes viral in a flash. And if it is bad news, it acquires a spin and speed that is virtually impossible to stop. Brands, therefore, are more susceptible to a tarnished image today, than in any other day and age. The cocktail of the online and offline world, consumer and shareholder activism, random decisions by government bodies, volatile social groups, and hatchet jobs by competing firms make it all too easy to fall from grace. And the loss of goodwill can play out in the form of decreased revenue, loss of clients or suppliers and loss of market share. Maggi re-launched with a digital media campaign “WeMissYouToo” and they have been promoting it forcefully on all brand’s social media channels. This as well as the brand has turned to a great degree brief in answering to their fan’s post. Be it loving their presents or answering on them, Maggi is trying to include an individual touch in their correspondence. In an interview, Narayanan said the organization is taking a look at setting up 24×7 sans toll customer services too keeping in mind the end goal to “get the connect, and network with the product consumer. Suresh Narayanan, chairman and managing director, Nestle India, said, “Our promotional strategy will be across three platforms. We will use traditional media to reassure our consumers regarding the safety of our product. We will connect digitally with our target group. Besides, there will be a lot of events tor brand activation.” The Swiss food major has also partnered with online marketplace Snap deal for selling Maggi.

The other current liabilities have increased, in comparison to the year 2014, mainly due to the MAGGI noodles issue liability.

RECOMMENDATIONS:

CONCLUSION:

Nestle motto ‘Good Food, Good Life’ will have to prove its credibility and put a lot of efforts again as it has ended up in scratch. Nestle should concentrate on product portfolio diversification with focus on diary, beverages and coffee and also chocolates as well as confectioner}’ in order to avoid over-dependence on single product. It is rightly said one can do anything but only if God and Time permits. Those who fail to analyses the happenings in the surroundings become losers and those who accommodate and adjust according to time rule the world. The controversy started igniting last year but no officials of Nestle India paid heed to do the necessary rectification resulting now a bad name and shame for the company. Health is of prime concern for everyone though taste also matters. It is very difficult to restore the faith lost because even the school going kids now say -Maggi is bad. This controversy will surely lead to increased awareness among consumers for understanding the impact of any product before consumption rather than blindly believing on false claims in the advertisements. It will also pressurize the other food product giants to move cautiously by abiding the norms of Food and Safety regulatory norms.

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Nestle Operations Management Project Report

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THE MAGGI NOODLES CRISIS IN INDIA

The crisis involving Maggi Noodles in India was so bad that several case studies have been made on it . It nearly threatened the existence of Nestle India as Maggi sales contributed to over 25 per cent revenues of the Swiss company’s India unit.

It was in 2014 when food safety regulators from the Barabanki district of Uttar Pradesh reported that samples of Maggi Noodles had high levels of monosodium glutamate (MSG) apart from high lead content above the permissible level. At the time, the labelling on packets of Maggi Noodles indicated that it had no added MSG.

A livemint.com report from 2017 recounted that an individual named Sanjay Singh, who was a food inspector in Uttar Pradesh government’s Food Safety and Drug Administration, spotted the label on the bright yellow Maggi packet that claimed “no added MSG” in March 2014 during one of his routine raids on retail outlets.

When it was sent to a state laboratory in Gorakhpur for testing, it was found that the instant noodle packets had MSG. The samples were then sent to the Central Food Laboratory (CFL) in Kolkata a few months later.

Almost a year later in April 2015, the CFL confirmed the Gorakhpur lab report and also confirmed that the amount of lead found was over 1,000 times more than what Nestle India Ltd had claimed.

However, Nestle in its first official statement after the report claimed that there was no order to recall Maggi Noodles being sold and that it was safe to eat. However, the controversy grew when the Food Safety and Standards Authority of India (FSSAI) asked Nestle to recall Maggi Noodles.

Nestle was left with no choice but to recall the popular snack from the market. Between June 5 and September 1, 2015, nearly 38,000 tonnes of Maggi Noodles were recalled from retail stores across the country and destroyed. Maggi’s share in the Indian market went down from 80 per cent to zero.

Also Read | Maggi row: Nestle India decides to take noodles off the shelves

Five months after the brand was forced to pull out of the market over safety concerns, Nestle India’s Maggi Noodles returned to shelves in November 2015. However, local bans continued in some states even after Maggi returned to the markets. It took almost another year for Maggi to return to shops across all states in the country.

Nestle India, Chairman & MD, Suresh Narayanan, in a 2017 interview to BusinessToday.in said how the Maggi Noodles crisis was the most challenging and dramatic situation in his entire professional career .

“Maggi is the worst crisis that we have faced in the 104 years of our existence in this country, also the worst crisis the company has faced globally in a long time,” he said at the time.

NEW CONCERN UNLIKELY TO AFFECT INDIA UNIT

The new controversy over ‘unhealthy’ food and drinks is unlikely to impact Nestle India as its portfolio is different from the parent company. It may be noted that India is one of the few countries where Nestle has a local research and development facility for a long time.

Abneesh Roy, Executive Director (Institutional Equities), Edelweiss Securities, told BusinessToday.in that Nestle India has only nine brands out of 35 billionaire brands of the parent. Roy also said that he does not expect the global row to significantly impact Nestle India’s business.

One of the reason is that over 45 per cent of Nestle India’s products comprise health and nutrition products such as baby food, dairy products and coffee, which were not classified as “unhealthy” in the internal document.

Other prominent products in Nestle India’s portfolio are Maggi Noodles and chocolates — both of which may be hard to renovate in case they do not meet the healthy criteria. Even then, the “unhealthy” food portfolio is unlikely to impact sales of Nestle India products.

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The Maggi Noodle Safety Crisis in India (A)

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The Maggi Noodle Safety Crisis in India (B)

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Case Study Of Maggi

California's drought case study.

The whole state of California has been hurt from Nestlé's doings. And probably is other resources they go to four. Everyone around the world could be affected by Nestlé's corporation leaving people with less work to bathe cook and drink. Nestlé is immensely profiting while sucking the world dry leaving millions of people without a drop to drink. The CEO thanks water should be

Nutritional Foods Inc: Case Study

Nutritional Foods Inc., a company that manufactures healthful products, has a major problem to address. Some of the company's products are allegedly responsible for a number of acute food poisoning cases. The problem has escalated from just a few cases of food poisoning to dozens of other reported cases. The company's chief executive, Fred James, has convened an emergency meeting comprising of members of the Crisis Action Committee. The key agenda of the meeting is how the situation that is threatening to get out of hand should be handled.

Maggi Case Study

According to the World Instant Noodles Association, India consumed 5,340 million cups or bags of instant noodles through 2014. It counts among the fastest growing markets in the world for the snack, having almost doubled in size since 2010 when it accounted for 2,940 million units. Maggi is estimated to have a 70 per cent share of the market, and contributes nearly 30 per cent to Nestle's Rs 9000 crore annual turnover. While starting off life

Nestle India Case Study

Returned months later to the north Indian food inspector who first sent the samples - after a detour via Shimla in the Himalayas - the consignment eventually reached a laboratory in Kolkata, where tests found seven times the legal levels of lead.

What Is The Mission Statement Of Nestle

Existence of high power of buyers due to the availability of a large number of substitutes and lower levels of loyalty is a considerable threat to Nestlé products. Inconsistence in raw

Case Study Of Tetra Pak And Nestle

Newspaper in the United Empire and ireland reported that ITX could take their products. Nestle issued a statements in China and Singapore, protecting the safety of these milk in those countries. This can be a Nestle record from Singapore: "We wish to encourage all events that our baby milk items are safe for use and we adhere to the strict examination and safety requirements needed by the Singapore Agri - Food and Veterinary Power" (Young, 2005 , p.15). The situations of ITX in milk were reported in the United Claims, Europe and South Africa as well.The above statements are excerpts from the Case Study given. Here I want to explain that how this crisis become a global crisis. How does it become a global crisis? First of all, as we all know, Nestle brand is an international brand which is very famous for its dairy products. Around the world, when called Nestle, everyone will inevitably associate with baby milk products, milk for adults, supplement drinks and snacks like Maggi. So, when the occurrence of a crisis involving Nestle products, then we will certainly wonder whether the products sold in our country are safe to eat or whether the products sold in our country involved with ITX incidents reported in countries such as Italy, United States, Canada and South

Nestle Swot Analysis

Notably, one of the core strengths of Nestlé is the strong brand image they have which inspires trust in consumers. Nestlé are able to build on this reputation to extend their brand categories. Further, recent efforts to follow corporate social responsibility strategies have heightened the firms approach to sustainability, which is aligned to current expectations from the consumer market for firms to take a greater responsibility towards the wider macro environment. Moving on to a critical analysis of the weaknesses of the company, one of the core weaknesses of Nestlé is the content of some of their products, which marks a move away from healthy eating initiatives. For example, Nestlé produce a number of confectionary goods including sweets and chocolate bars. Nestlé will in the future have to work with the UK government to ensure that a clear marketing message is put across for such treats to only be enjoyed alongside a balanced diet. Overall, however, Nestlé’s strengths overshadow their weaknesses and many of the weaknesses are being tackled by strategic actions. Recognition of the firm’s opportunities and threats leads to a discussion of the value of internationalisation and in particular the opportunities present within emerging economies. Further, the development of capabilities and thus

Swot Analysis Of Maggi Noodles

India has a growing packaged food market of 15% annually which would help Maggi Noodles to increase their pool of consumers.

Product Development Model: Nestle's Innovation Model

Nestle is the world’s leading nutrition, health and wellness company. From Henri Nestlé’s humble beginnings with the first product, Farine Lactée, which revolutionized infant feeding, the company’s priorities have remained the same -about bringing high quality, safe and nutritious foods and beverages to people through all stages of life. In Nestle’s pursuit of delighting and satisfying the customers, Nestle’s products are adapted to meet local, regional taste preferences, religious and cultural sentiments and disparities in purchasing power.

In case of pasta product development, Nestlé took benefit of acquiring Lambert’s Pasta and Cheese which has the required experience for manufacturing and marketing in this category. NRFC did not perform a test market, but due to Lambert’s Pasta and Cheese experience, the risk of product failure was very limited. However for pizza and topping development, NRFC has faced technical problems that forced the company to drop the preassembling pizza concept even with 52% positive purchase intent. Because of the competition with Kraft, NRFC has skipped test market and consider pizza as natural extension to its existing product line. However, pizza product will take benefit from efficient existing supply chain management. Therefore pizza, will expend less to establish the distribution channel. Due to pasta product similarities, NRFC believes that marketing inputs from previous product are enough, hence marketing researches and tests where slightly different. No

Pest Analysis: Pestle Analysis Of Maggi

As of 28th of May, 2015, the shares of Nestle were down by 15 percent from Rs 7,038.65 to Rs 6,010.80. The economic ramifications of the ban on Maggi impacted the entire the instant noodle industry due to increased levels of caution amongst the consumers. It led to HUL and Indo-Nissin Foods to take down their Knorr and Top-Ramen brands from the market. As per Brand Finance, due to the controversy surrounding Maggi, there has been a $200 million dollar brand value erosion for Nestle from $2.4 billion to $2.2 billion. The instant noodle sales in India have reduced by 90% from 350 crore to 30 crore within a month after the

Nestlé Refrigerated Foods: Contadina Pasta & Pizza

Third alternative is to stand by, because the risk of non profitability is too high and because the perceived price and quality value does not give the product the best positioning. Nestlé should wait until doing deep test market to be sure about parent brand penetration rate and resolve price/value and positioning problem by trying to reduce product price. If this option is chosen, Nestlé will lose the first mover advantage, pre-empted by competitors and probably will never get the deserved market share.

What Are The Approaches Of Nestle

The successful of the Nestle Company since 1866 from it startup till now is actually based on the good planning by the managerial decision in the organization. However, the most important part is they make the people in the organization is an important part in running its business. There is two fundamental documents in the company that is The Nestle Corporate Business Principles and the Nestle Management and Leadership Principles which is both are lay down principles that permeate the whole of the Nestle group. While, both document is the Nestle Company policies and strategies that they need to follow and also become the set of tone and style for the company approach in running the business.

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According to me Nestle have only focus on the economic responsibilities and has been concern about the shareholders acceptations than the society. There is a wide space for improvement in the company’s policies towards society and environment.

Nestle Supply Chain Case Study Essay

Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ - Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer-goods/nestle.html, para. 1). The merger in 1905 between Nestle and the Anglo-Swiss Milk Company created the Nestle we know today. Nestle is one of the world’s largest suppliers of food and nutritional products operating with 461 factories in 83 countries, with 328,000 employees worldwide (Fries, Lorin, Goldberg, Ray, 2012. Nestle: Agricultural Material

nestle maggi noodles case study

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