Introduction
Nestle
is a Swiss company founded in 1866 By
Henri Nestle. And Nestle markets in products in approximately 130
countries in the World. Nestle
manufactures around 10000 different products. Maggi is first introduced in 1872
in Switzerland by Julius Maggi in Singen Germany. Later, its owned by Nestle
Company in 1947. Nestle launched Maggi for the first time in India in the year
1982 with its instant noodles formula (2-minute noodles). The brand is very popular in Australia, India,
Malaysia, New Zealand, Singapore, South Africa. Maggi has faced lots of hurdles in its journey
in India. So they come up with Maggi-2minutes noodles with the price of Rs.2.10
with a closed 100% margin. NIL shifted its focus from working women and
targeted children and their mothers through its marketing.
Maggi Product Mix;
1. Maggi
2-minute Noodles.
2. Maggi
Vegetable Atta Noodles.
3. Maggi
Cuppa Mania.
4. Maggi
Vegetable multigrain Noodles
Various tagline of
Maggi
- Value Proposed:- self-fulfillment for moms in cooking evening snake for their hungry children. Tagline:- “Mammy I’m hungry”. -1980
- Value Proposed:- A quick and tasty food for children. Tagline:- “Fast to cook, Good to eat”. -1980
- Value Proposed:- A tasty and healthy food. Tagline:- “Taste Bhi, Health Bhi”. -2000
- Value Proposed:- Eat Maggi noodles on the go. Tagline:- “Just add gram pain and carry on jaani”. -2000
- Value Proposed:- Rewarding loyal customers by associating with the product. Tagline:- “Meri Maggi”. -2010
- Value Proposed:- creating curiosity among the customers about the new variety. Tagline:- “Guess the taste”. -2011
Controversy
We know that many people are concerned
about Maggi noodles, after the recent events in India. Maggi controversy all
began when Vk Pandey, a 40-year old Barabanki based officer of the Food Safety
and Drug Administration (FDA) in Uttar Pradesh had collected more than two
dozen packs of instant noodles from stores across the state. According to a Returns
report, they found a led concentration of 17.2 parts per million, which is way
beyond the permissible limit. They also found very high levels of MSG.
Nestle India's official statement said 'we do not add
Monosodium Glutamate (MSG) to Maggi noodles. we used a raw material that may
contain naturally occurring Glutamate(MSG), last year for a test so as
to find out whether Nestle India. contained any monosodium glutamate( commonly
known as Ajinomoto). A test enhance which not only present in Maggi but in
mostly all package food items.

Soon after the recall of Maggi
Noodles from across Uttar Pradesh, other states like Maharashtra and Gujarat
also got Maggi noodles tested, results of which are awaited. Recently,
Bollywood stars Amitabh Bachchan, Madhuri Dixit and Preity Zinta also got an FDA
Notice for endorsing Maggi noodles, with the FDA seeking a report from the
stars within 15 days on a claim made in the advertisement regarding the nutrition
value of the ‘2-minute noodles’.
Ban across India
1) Jammu
Kashmir - for 1 month
2) Delhi - for 15 days
3) Gujarat - for 1 month
4) Uttarakhand - for 90 days
5) Kerla
& tamilnadu - 90 days
Strategy
adopted to overcome the controversy
In
India, Maggi products were returned to the shells in November 2015. Accompanied
by a Nestle advertising Campaign to win back the trust of members of the Indian
Community. At this time, the Maggi anthem by Vir Das and Alien Chutney took the
nation by storm. Nestle resumed production of Maggi at all five India based
plants on 30 November 2015.
In India, Maggi noodles
carry a green dot, meaning they are specifically formulated to serve
Vegetarians, the special formulation is not available in other Countries,
unless imported from India.
Current
situation of the Company
Even today, Maggi enjoys a market share of
over 70%, despite the presence of a number of other brands. This decade old
dominance, however, is set to be shaken
up. Which is valued at around 250 crore. According to Data monitor
estimates, the instant noodle market in India is worth over Rs.1300-crore and
is growing is phenomenal of over 17-20%
per year. Current rank of this company in India 18 in the brands of top
50 most valuable Indian brands.
In
India the current market share approximately 53% in India.
Financial
Analysis of the Company before the controversy
Before
the controversy Nestle company’s financial reports was good before two years
ago. And Maggi was ranked number 18 in the Brands top 50 most Valuable India
brands study conducted by Mitt ward Brown and Commissioned by WPP last year
with a valuation of $1127 million. Maggi
instant noodles are popular in India and Malaysia.
Market
share
Nestle
has 39% Market share in India and Malaysia, and had 90% market share in India.
Goodwill
in India
Before controversy Maggi’s Goodwill was good
in India last 33 years. Because every Indian people had trust on this product
accept few people.
Financial
Analysis of the Company after the Controversy
After
the controversy Nestle company has face lots of hurdles to return increase their goodwill and financial
position in India. Following the ban, Nestle took a hit of Rs.450 crore as it destroyed more than 30000 tons of
Maggi the firms had reported its first loss in there decades at Rs.64 crore in
the April-June 2015 quarter.
The
size of the intent noodles category too shrunk by nearly half, to Rs.2000 crore
for the full year ended January 2016 from 3400 crore in the preceding 12
months, two officials said quoting data by researcher Nielsen, we remain
positive an Nestle from a two-three year perspective.
Impact
on Market share in India
Prior
to a nationwide ban by the food safety and standards Authority of India (FSSAI).
After ban the market share was reduce to 53% in India.
Impact
on Selling & Distribution
Nestle
India, which following a January-December financial year, reported a decline
17.2% in its not sale for the year ended December 2015.
Impact
on Net Profit
After
the controversy or between that duration directly impact on the net profit on
amount of the Maggi setback net profit for the year fell to Rs.563 crore, from
Rs.1185 crore in the previous year.
Conclusion
After
the study or Analysis of this company we founded, whatever company had faced the problems
related to product only for some time and it impact on the company. Between the
controversies, Yog guru Ramdev baba also introduced Patanjali Atta Noodles. The
taste is nice but still in the end, people will continue to eat Maggi because
nothing can beat the taste of Maggi and nothing can satisfy the hunger of
Maggi. In our opinion, this controversy was just for few days, nothing else.
Yes few people got affected by this incident but besides this people are still
in love with Maggi Noodles.
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