Maggi Case Study Solution

Maggi Case: ‘Lead’ing its way out of trouble

Summary

The case is about Maggi – how it faced all the problems of safety concerns, its impact on the brand equity and consumer preferences, sales and profit of parent company Nestle and the measures that can be undertaken to revive the brand. This has been supported through various facts and data obtained from Nestle statistics. Future action items have been proposed with an expectation of a successful and strong comeback by Maggi.

Introduction

Maggi, a flagship product of Nestle, is a brand synonymous with instant noodles. Just a 2-minute wait and we had a tasty meal in front of us. Till 2014, it was enjoying its market share of 70% in the India Noodles Market with healthy annual sales of over Rs 10,000 crores. According to 2014 Brand Equity Survey, it was ranked among top 5 most trust-worthy brands. Of late though, owing to the controversies we are going to

Based on the NABL lab findings, Nestle should alter its packaging or launch a variant of the existing product with “light Blue (some parts) and yellow (major chunk)” packaging. Blue color signifies trust, loyalty and confidence and Maggi can advertise/market this across channels, taking customer feedback and implementing it. It should also label the products with a “lab-tested stamp” to highlight the extra care that Nestle takes for its consumers.

Consumers are king and should be empowered. Nestle can involve consumers in reviving Maggi, seeking their inputs, highlighting a consumer’s success story after failure and thus, relating to Maggi. They can run contests across B-Schools – case studies on Maggi crisis management. Students, teachers, mothers etc. can be invited to Nestle factories or labs to showcase the best practices and hygiene environment in which Maggi is prepared. The staffs could be pre-trained to deal with consumers in an efficient way educating them about the