The Negative Effects Of Maggie's Nestle

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Nestle has had a previous scare situation with the Maggie’s instant noodle before the contamination scare found in frozen pizzas recently. Although executives belief that the issue will not be as serious as the Maggie’s recall, some experts are skeptical about weather or not this will have the same negative effect on the business and products name. Similar to the Maggie’s recall, this new situation may face a negative impact on the different aspects of the marketing mix as well as some of the advertising claims. Once it was announced that the Maggie’s instant noodle in India contained a high level of lead, this affected all aspects of the marketing mix: product attribute, distribution, communication and pricing. The product attribution was…show more content…
Clearly Nestle uses a retail concentration as their distribution strategy since their product is sold in grocery stores and markets, however, they had to cancel all distributions. As a result to the halt in distribution and negative image towards the product, this also greatly affected the communication strategy of the product. When Maggie’s instant noodles was first launched, its promotional activities included creating awareness of females and kids. This was instance success because it grabbed the attention of the people in India, however, with the health issue scare, consumers strived away from the product and might currently strive away when the product is back into the shelves. Since most people in India will be skeptical about buying the product, Maggi’s price strategy might change since they are trying to win consumer’s…show more content…
Nestle is a global brand name therefore by having two recalls on two different countries also affects their global advertising; Nestle’s global advertising is standardised since they are a global brand name.The only aspect in the communication strategy that might not be affected is the push and pull strategy. Nestle uses a pull strategy instead of a push strategy, since their products have a large market segment as well as having a long distribution channel. Nestle’s products are meant for a large segment and they will not change their type of strategy since that might entail changing their types of product and that will be unnecessary. There are still consumers who are still willing to keep on consuming Nestle’s products. Their products are easy and fast to make,therefore consumer find their products convenient. For instance, people in India were frequent consumers of the Maggie instant noodles because the process to make them were fast and it only required water and heat. Hypothetically, if India had decided to permanently remove all Nestle’s products of the market shelves and make it illegal due to the numerous global recalls, this could perhaps cause a gray market. People in India do not have as much resources as other countries therefore, some consumers would rather buy the product through a

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