Nestlé India Limited: comeback after the Maggi fiasco

Abstract

Research methodology

We have used data mostly from published sources like The Economic Times, Forbes, The Times of India and the annual reports of Nestlé India Ltd. Because we classify it as a Teaching Case Study as per the guidelines of Emerald Publishing, we have ensured that any data presented in the case has been acquired only from published sources and is not internal company data. Citations have also been provided wherever necessary.

Case overview/synopsis

On 6 June 2015, Nestlé India’s top product Maggi instant noodles was banned nationwide for an unspecified period. The ban was imposed due to allegations of Maggi containing high amounts of lead and message, and consequently violating the food safety standards. What followed was the destruction of massive stocks of Maggi which had been taken off from shelves of stores countrywide. Furthermore, the company faced a huge blow financially as its sales plummeted. This case delves into how Nestlé India adopted relevant strategies to successfully avert the Maggi crisis. Some remedial measures included appointing a Managing Director who understood the market, improving the communication channel and boosting the churn out of new products along with greater emphasis on marketing and advertising.

Complexity academic level

This case is aimed mainly at undergraduate level students in the field of management studies and public relations management. This case is also relevant for students pursuing a specialization in Crisis Communication, Public Relations, Marketing and Organizational Change.

Citation

Akhter, P.S., Prusty, S. and Jena, L.K. (2023), "Nestlé India Limited: comeback after the Maggi fiasco", , Vol. 19 No. 3, pp. 417-438. https://doi.org/10.1108/TCJ-06-2022-0115