Maggi
What Xerox is to photocopier and Colgate to toothpaste, Maggi is to noodles in India – Economic times, May 21st 2003
1 Introduction
Nestlé India, the Indian subsidiary of Nestlé SA, introduced the Maggi brand in India in 1982, with launch of instant noodles - Maggi 2 Minute Noodles. Nestle India created a new category in the packaged food segment. Nestle India’s first-mover advantage helped to establish and retain its position as a leader in its category.
Over the years, Nestle India extended the Maggi brand line to a range of products like Pasta, Masala, soups, sauces and ketchups. However, other product extensions of the brand were not as successful as the instant noodles.
In 2005, Nestle India introduced a range of new 'healthy' …show more content…
In Uttar Pradesh, it was found to be 17.5 ppm in the sample collected.
4 Impact Not only did the Maggi case impact Nestle India, it impacted the entire instant noodles segment in India.
As per Euromonitor International report [1], Nestle India was leading the Noodle segment with ~63% of the market share. The second player (ITC) in the segment was nowhere close to the contender. With the main contender, Nestlé’s Maggi off the market, it was predicted that the next big players (ITC) would benefit from the Nestlé’s crisis. But the results of the sales post the Nestlé’s tell a different story. The demand for other instant noodles has shrunk after the crisis. ITC had to cut down its production to adjust for the demand.
ITC Chairman notes that the consumer’s perception of all the noodles manufacturers has taken a hit. [1] http://www.business-standard.com/article/management/not-much-to-cheer-for-yippee-115082701207_1.html
5 Discussion
When Nestlé's top selling product was considered harmful, everyone’s focus was on Nestlé to see how they would
What Xerox is to photocopier and Colgate to toothpaste, Maggi is to noodles in India – Economic times, May 21st 2003
1 Introduction
Nestlé India, the Indian subsidiary of Nestlé SA, introduced the Maggi brand in India in 1982, with launch of instant noodles - Maggi 2 Minute Noodles. Nestle India created a new category in the packaged food segment. Nestle India’s first-mover advantage helped to establish and retain its position as a leader in its category.
Over the years, Nestle India extended the Maggi brand line to a range of products like Pasta, Masala, soups, sauces and ketchups. However, other product extensions of the brand were not as successful as the instant noodles.
In 2005, Nestle India introduced a range of new 'healthy' …show more content…
In Uttar Pradesh, it was found to be 17.5 ppm in the sample collected.
4 Impact Not only did the Maggi case impact Nestle India, it impacted the entire instant noodles segment in India.
As per Euromonitor International report [1], Nestle India was leading the Noodle segment with ~63% of the market share. The second player (ITC) in the segment was nowhere close to the contender. With the main contender, Nestlé’s Maggi off the market, it was predicted that the next big players (ITC) would benefit from the Nestlé’s crisis. But the results of the sales post the Nestlé’s tell a different story. The demand for other instant noodles has shrunk after the crisis. ITC had to cut down its production to adjust for the demand.
ITC Chairman notes that the consumer’s perception of all the noodles manufacturers has taken a hit. [1] http://www.business-standard.com/article/management/not-much-to-cheer-for-yippee-115082701207_1.html
5 Discussion
When Nestlé's top selling product was considered harmful, everyone’s focus was on Nestlé to see how they would