Question

Analyze the case study:-
The Disaster and Recovery of Nestle India's Maggi
and answer the following question.

Q. Examine the rationale of approach to marketing on the part of leadership in Nestle India and the impact of its marketing approach.

Answer 1

In 2015 Maggi noodles was banned by Indian regulators after finding excess levels of lead in noodle samples. The company had to remove 35,000 tons of the products. Even though court overturned the ban in August, Maggi’s severely lost its reputation and it become difficult to regain its sales. “To regain the lost trust and reputation the decided to engaging and communicating with all stakeholders and by their continuous effort helped to regain their maketshare.

• · They made it exclusive by making a deal with snapdeal, the only platform through which they can buy it before its official come back to stores.
• · Innovating with Existing Products: company introduced new products to reduce dependence on a single product and includes six new variants of Maggi .
• · Emphasis on health and nutrition was increased by company
• · They increased advertising to keep in touch with public. They contained tagline like “come back yaar miss you “.The first relaunch ad had a mother speaking about his Childs tryst for magi noodles. But the main ingredient for success was improved PR and communications.
• · Communications staff was substantially increased. Now to engage with government authorities and regulators at each stage they have separate staff.
• · They focused greatly on customer relationships. It was mainly through customer services helpline or by posting FAQs on its website regarding recent developments of the company.
• · For communications and public affairs they also formed a new team at its head office.
• They started giving plenty of freedom to local leaders to innovate.

• Segmentation- A marketing policy that they kept before the ban, that is grouping similar customers together.

Currently the product is far ahead with regained reputation and price-to-earnings ratio of 61 times for CY20.