Nestle Maggi is a popular snack that recently got banned in India, leaving many people disheartened. The noodles are a part of the most memorable experiences of many Indians. Generations have grown up loving its signature taste. Hence, when Maggi made its comeback to the Indian shelves and stomachs, after never having left their hearts, it was a reason to celebrate for both people and the company.
About Nestle Maggi
Nestlé is a Swiss food and beverage company. On the basis of revenues, it is the largest food company in the world. Nestlé’s products include breakfast cereals, baby food, bottled water, coffee and tea, ice cream, frozen food, confectionery, dairy products, pet foods and snacks. Maggi is an international brand of noodles, seasonings and instant soups owned by Nestlé since 1947.
In May 2015, Food Safety Regulators from a district of Uttar Pradesh reported that some samples of Nestle Maggi had very high levels of monosodium glutamate (MSG) and up to 17 times the permissible limit of lead. On 5 June 2015, Food Safety and Standards Authority of India recalled all nine variants of Maggi instant noodles and oats masala noodles from India, declaring them hazardous and unsafe for human consumption. The Central Government banned nationwide sale of Maggi noodles for an indefinite period. In August 2015, tests conducted by the US health regulator FDA didn’t show any dangerous lead levels in the products. On 13 August 2015, the ban was struck down by the Bombay high court. The court stated that proper procedure was not followed while imposing the ban and called into question the test results, as the samples were not tested at laboratories authorized by the National Accreditation Board for Testing and Calibration Laboratories (NABL).
As a result, Maggi came back to the stores in India in November 2015.
Nestle Maggi’s Business Objectives
Maggi’s stock of Rs. 320 crore was recalled from across the country by Nestle India after it was banned by FSSAI. After the ban was imposed pan-India, Nestle India was ordered to not only take Maggi off the shelves, but to also destroy the stock, which included 30,000 tonnes of instant noodles. The Corporate Affairs Ministry levied Rs 640 crore penalty on Nestle India in light of finding MSG and lead beyond the permissible limit in Maggi noodles. The ban had also impacted the parent firm Nestle SA. Nestle sales in Asia, Oceania and sub-Saharan Africa markets were adversely affected by the issue in India.
In the wake of the Maggi crisis, Nestle India is trying its best to increase the consumption of its flagship instant noodles brand while eying double digit growth. It is also maintaining a sharp focus on digital media and pushing other products so that all categories contribute significantly to the company’s overall revenue. Nestle India plans to carry out intensified campaigns across various media to overcome the impact on Maggi from the whole controversy in order to bring the brand back on track.
Strategy Adopted By Nestle Maggi
The comeback of Maggi noodles on the auspicious eve of Diwali and on the day of Dhanteras was a masterstroke by the company as Maggi has special relationships and strong emotional bonds with its consumers across the country. Furthermore, Nestle Maggi tied up with e-commerce giant Snapdeal to burgeon its sales effectively. Snapdeal launched an exclusive ‘Maggi Welcome Kit’ and announced #SnapdealWelcomesMaggi all around. Also, Snapdeal announced that it would sell Nestle’s Maggi via a unique “flash sale model” as the noodles brand made a comeback after a gap of five months. Flash sales or deal-of-the-day is a type of an e-commerce business model in which a website offers a single product for sale for a limited period of time. Customers willing to buy have to register to avail the deal.
The company is also looking to steer growth in other categories such as milk products and chocolates, along with the relaunch of Maggi. The company is engaging actively in social media platforms and is building a strong and effective digital campaign to promote the Maggi brand. Along with television and print campaigns, it is engaging with customers via Facebook and Twitter.
Results Achieved By Nestle Maggi
There was so much anticipation for the return of one of India’s favorite brands that the company witnessed a phenomenal response to the product’s sale from customers across the country. It only took 5 minutes for 60,000 Maggi welcome kits to be sold on Snapdeal’s website as consumers thronged the e-commerce platform to grab their 2-minute instant noodles at the earliest. Clearly, the marketing partnership between Nestle India and Snapdeal bore fruits for both. Maggi is currently available in over 700 towns and sold by 3 lakh shopkeepers.
A marketing partnership is a smart collaboration of two or more organizations with the objective to develop a marketing program to meet their respective business goals. These tie-ups and partnerships are beneficial for all organizations involved as it allows one to leverage the brand value of the others and reach out to the other brands’ customers. The need for such a partnership program exists when one organization can achieve its goals more effectively by leveraging the popularity and reach of another organization having a similar customer base. Marketing partnership, if achieved between appropriate brands, can contribute to increase in brand awareness, product distribution, customer acquisition, program funding and most importantly, increase in sales.
Brand logo: nestle.in
Other image: thehindu.com/business