Nestle India is facing a crisis regarding its popular Maggi noodles brand. Testing revealed Maggi had levels of MSG and lead that exceeded permissible limits. The UP FDA banned Maggi and other states are also testing the product. Nestle needs to cooperate with regulators, address issues, and rebuild trust through measures like celebrity endorsements, advertising, and product changes. Competitors can benefit from this crisis by attracting Maggi customers and increasing their visibility. Overall, the Maggi crisis presents a major challenge for Nestle to regain customer trust and confidence.

1. The Story
of Maggi
Crisis

2. Way Ahead
A look at the past
What's bothering Nestle India at present?
What Nestle India has done and is currently doing?
What more does Nestle India need to do to get
through?

3. A look at the past
 Nestlé, a subsidiary of Nestlé S.A. (Switzerland) formed its company in India and
set up its first factory in 1961 at Moga, Punjab.
 Presently it is the world's largest and most diversified food company.
 Maggi holds a commanding position in the Noodles Segment with over 60%
market share.
 Maggi has a large fan following in the country and personalities such as Amitabh
Bachchan have endorsed it in the past.

4. What's bothering Nestle India at present?
 Maggi one of Nestlé's most popular products has come under the scanner lately.
 The UP Food Safety & Drug Administration recently carried out systematic raids on
retail outlets of Nestle selling Maggi Noodles.
 Testing in Government Laboratories in UP and Kolkata revealed that one of India’s
favorite snacks had:-
 7 times the permissible amount of MSG or monosodium glutamate otherwise
popularly known as Ajinomoto, a taste enhancer.
 Elemental lead has also been detected of up to 17.2 parts per million.
 FDA officials seized more than 2 lakh packets of various quantities of Maggi
Noodles.
 FDA officials from other states have begun conducting similar raids and samples of
the product have been sent for testing.
 At present, FDA Uttar Pradesh has banned the product and there have been rumors
that it might be banned across the country too.

5. What Nestle India has done and is
currently doing?
•Issued a press statement on 21st May,
which reassures consumers the brands
commitment to quality.
•The Brand has a page “Meri Maggi” on
Facebook and issued a similar
statement through a post.
•The post received mixed reactions
from followers, some defended the
brand while others continued asking
questions on the controversy.
•Interestingly some also raked up the
controversial statements made by its
Chairman on privatization of ‘Water’.

6. How is Nestle currently dealing with the
situation?
 @Maggi India twitter issued a similar tweet reassuring its commitment to
consumers
 Maggi India had embarked on a Khushiyon Ki Recipe or ‘Moms Maggi’
campaign prior and post Mothers Day on 10th May
 Maggi has increased the ad spots post the crisis on several GEC’s such as
Colors, Zee TV, Star Plus, Sony and SAB TV
 These ads are visible across prime slots i.e. between 9pm - 11pm

7. What do consumers have to say?

8. What can Nestle India do in terms of crisis
management?
 Nestle India could look at roping in a brand ambassador to advocate their products
 The ambassador or the celebrity should have high trust value amongst the
audiences.
 Coca-Cola & Cadbury roped in Amir Khan & Amitabh Bachchan respectively during
their time of crisis.
 Maggi has been in the market for years. They can reveal statistics of deaths due to
Maggi over the past decade which would be none. Hence using numbers as a
positive reinforcement.
 Make necessary changes to the product & that adhere to the norms.
 Cooperate with the FDA & redress the issue.
 Build a campaign around Maggi being a health conscious brand through its latest
wheat, oat & raggi noodles.

9. What can this mean for competition?
 Maggi currently dominates its segment with 60% market share.
 The current crisis can prove to be an immense window of opportunity for
rival brands such as Ching’s.
 It gives the chance to woo audiences without competing with the market
leader.
 They can use the situation as a chance to increase their visibility at retail
markets & occupy racks that were previously dominated by Maggi.
 They can possibly look at increasing their marketing budgets & media
spends.
 An opportunity to build relationships with audiences.

10. Conclusion
Nestle obviously cannot ignore the gravity of the situation
they are in.
Maggi has lost the trust of many customers & rebuilding
that trust will be a challenge for Nestle.
There is an immense window of opportunity for Maggi’s
rival brands.
One can derive that the crisis will most certainly have an
impact on Nestlé's revenue.