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Inventi Impact - Business Research & Reviews

Articles

  • Inventi:mbr/18482/16
    THE CRISIS FACED BY NESTLE LIMITED WITH RESPECT TO MAGGI NOODLES
    Venkatesh Ganapathy*

    This case details the crisis faced by Nestle India with respect to its flagship brand Maggi Noodles. The Maggi brand enjoyed a strong reputation and has been popular in India for more than two decades. Yet the way the company handled the crisis was far from satisfactory. Consumers felt cheated and scared. The health claims made by the company proved to be hollow. After the crisis, the company made claims and counter claims adopting a defensive stance. Maggi is a food product and there have been reports in a section of the media that food products like Maggi contain artificial ingredients like Mono sodium glutamate that can trigger allergic reactions in individuals. Noodles are made from “Vanaspati” which is nothing but hydrogenated fat. Hydrogenated fat is hazardous for health as it can cause obesity and other cardiac disorders in the long run. Though noodles are patronized by consumers due to the fact that it is a convenience food and can be cooked in the shortest possible time (the ad for Maggi noodles often claimed that it can be cooked in just two minutes), today consumer consciousness and awareness about health and hygiene issues is at a heightened level. Consumers do not forget negative publicity easily and the rampant spread of social media networks and the penetration of Internet ensure that bad news spreads fast. The case analyses how this crisis affected Nestle India Limited and other companies making food products and how in this case, quality issues and non-conformances were detected by the regulator. While Nestle India lost crores of rupees, its brand image also suffered due to all the adverse reports in the media about the crisis. While monetary losses can be recouped, how difficult it is to recover the lost image is anyone’s guess.

    How to Cite this Article
    Venkatesh Ganapathy. The Crisis Faced by Nestle Limited with Respect to Maggi Noodles. Inventi Impact: Business Research & Reviews, 2016(2):72-75, 2016.
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