In 2015, NESTLÉ India underwent a major crisis as the product which contributed to nearly 30% of its sales had to be taken off the shelves. Maggi—the go-to convenience food for all generations (especially kids and young adults)—which had entered the market in 1983, was banned. With a market share of 70-80% before the ban, NESTLÉ, which got the ban lifted in November 2015, had to undergo the task of winning back the lost market. Over a period of 8 months after its relaunch, the brand regained about 60% of its market back, but the question is how could such brand disaster be avoided in future? The case revolves around a major brand recovering from a brand disaster, and whether they did it well enough or could the situation have been managed better. It also enquires as to what road should be taken forward from here. It notes the action taken by the government against the brand and leaves it to the judgment of the readers if the actions taken against the brand were a little too harsh, solely because MNCs are usually considered a soft target in India. The readers must also understand and analyse the different brand relaunch strategies that were adopted by NESTLÉ and the next steps that should be taken by it.
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Case Study|
November 01 2023
Nestle and Maggi in India: Recovering from a Brand Disaster: Available to Purchase
Arvind Sahay
Arvind Sahay
Indian Institute of Management Ahmedabad
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Received:
October 11 2023
Online ISSN: 1111-111X
Print ISSN: 1111-111X
© 2021 by the Indian Institute of Management, Ahmedabad
2021
Indian Institute of Management, Ahmedabad
Licensed re-use rights only. Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for class discussion. Cases are not designed to present illustrations of either correct or incorrect handling of administrative problems.
Teaching Notes 1–25.
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Received:
October 11 2023
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Sahay A (2023;), "Nestle and Maggi in India: Recovering from a Brand Disaster: ". Teaching Notes, Vol. ahead-of-print No. ahead-of-print.
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