Introduction
Instant Noodles
Which snacks come to your mind when you have hunger pangs late night? Often, Instant noodles are the quick solution that we think of. Instant noodles had an overall market of 100 Billion Servings in year 2015. According to World Instant Noodles association, India is the third largest consumer of Instant noodles (5340Million Cups) in 2014 and is one of the fastest growing markets in the world of snacks.
Maggi Noodles
In India, when we talk of instant noodles, Maggi is the first name that pops up in your head. Maggi a brand of Nestle started selling back in 1983. Since then it has captured nearly 70% of the instant noodles market in India, which nearly contributes to 30% of Nestles revenue.
According to the BusinessWeek …show more content…
You give minimal thought while buying it. The consumer decision making process is shown in the diagram below. Maggi Fiasco
Maggi noodles faced one of the biggest crises of its time in April 2015, when samples of MAGGI Noodles were detected with the presence of MSG on the packs that contained a “No added MSG” claim. The hit was so hard that Maggi was temporarily banned from many states like Tamil Nadu, Delhi, Uttarakhand and Jammu Kashmir. It was dropped from most of the retailers like Big Bazaar, Hypercity, Walmart and other online stores.
Nestle had to destroy 30,000 tones of Maggi, costing about Rs 450 Crore. The company even paid 20 Crore to Ambuja Cements for disposing off the stock. As a result of it, the market share of maggi reduced to 10.9%, the overall demand of Instant noodles decreased from 5340 Million servings to 3200 Million servings and the Parent company, Nestle faced a loss for the first time in three decades of its operations in India.
Series of actions: A glimpse of consumers reaction on social media
-"What kind of human being would put lead in food for kids..? #Maggi …show more content…
But when the controversy spread like a forest fire and a ban was imposed on many states for the manufacturing and sale of Maggi, Nestle recalled all Maggi variants from retail shelves. Then it came out with a 4 page pdf assuring its stakeholders that Maggi is safe for consumption according to many independent tests conducted by the company in different laboratories. But it was quite a technical report and that too without any company logo or any higher official’s
Instant Noodles
Which snacks come to your mind when you have hunger pangs late night? Often, Instant noodles are the quick solution that we think of. Instant noodles had an overall market of 100 Billion Servings in year 2015. According to World Instant Noodles association, India is the third largest consumer of Instant noodles (5340Million Cups) in 2014 and is one of the fastest growing markets in the world of snacks.
Maggi Noodles
In India, when we talk of instant noodles, Maggi is the first name that pops up in your head. Maggi a brand of Nestle started selling back in 1983. Since then it has captured nearly 70% of the instant noodles market in India, which nearly contributes to 30% of Nestles revenue.
According to the BusinessWeek …show more content…
You give minimal thought while buying it. The consumer decision making process is shown in the diagram below. Maggi Fiasco
Maggi noodles faced one of the biggest crises of its time in April 2015, when samples of MAGGI Noodles were detected with the presence of MSG on the packs that contained a “No added MSG” claim. The hit was so hard that Maggi was temporarily banned from many states like Tamil Nadu, Delhi, Uttarakhand and Jammu Kashmir. It was dropped from most of the retailers like Big Bazaar, Hypercity, Walmart and other online stores.
Nestle had to destroy 30,000 tones of Maggi, costing about Rs 450 Crore. The company even paid 20 Crore to Ambuja Cements for disposing off the stock. As a result of it, the market share of maggi reduced to 10.9%, the overall demand of Instant noodles decreased from 5340 Million servings to 3200 Million servings and the Parent company, Nestle faced a loss for the first time in three decades of its operations in India.
Series of actions: A glimpse of consumers reaction on social media
-"What kind of human being would put lead in food for kids..? #Maggi …show more content…
But when the controversy spread like a forest fire and a ban was imposed on many states for the manufacturing and sale of Maggi, Nestle recalled all Maggi variants from retail shelves. Then it came out with a 4 page pdf assuring its stakeholders that Maggi is safe for consumption according to many independent tests conducted by the company in different laboratories. But it was quite a technical report and that too without any company logo or any higher official’s