Abstract

The case provides an overview of Nestlé India Limited’s (NIL) branding strategy to revive itself post Maggi fiasco in 2015. The case explores the outcome of the Maggi Fiasco that took place in 2015. On June 5, 2015, Food Safety and Standards Authority of India (FSSAI) ordered Nestlé to recall all the Maggi noodles, from retail outlets throughout India, after the lead content in it was found to be beyond permissible limit. The case briefly discusses the Maggi crisis and further reviews the roots of the crisis. This controversy would have eroded the brand value by at least 30-40%, said brand specialists. Sales had dropped by at least 60-70%, believed retail analysts. So, it was very important for NIL to rebuild its brand value and market share and to regain customer trust in its brands. NIL sold only 20 brands in India out of the 20,000-odd brands it sold worldwide. But from the end of 2015, NIL started to launch new products and also to introduce fresh brands in new segments. To handle the crisis, Suresh Narayanan was roped in to replace Etienne Benet as the Chairman and MD of NIL. After several meetings at Nestlé’s global headquarters in Switzerland, the global company’s board and management finalized a three-year strategy that Nestlé would follow in India.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Critically analyze the different branding strategies adopted by NIL for its products across different segments in order to build up its brand value and to revive market share in India, after the Maggi crisis.
• Study the process of portfolio management/expansion measures undertaken by NIL and draw comparisons between the marketing measures taken before and after the Maggi crisis.
• Understand how NIL came up with different marketing strategies (comprising a plan of activities for 3-4 years), so as to ensure its sustenance for the next few decades to come as a market leader.

Keywords

Brand Equity, Portfolio Management, Marketing Strategy, Nestlé, NIL, Branding , Decisions, Maggi, Crisis Management