A Tale of Brand Rebuilding – How Maggi Captured the Indian Market Despite Setbacks

When did maggi start in India. The Maggi brand entered Indian markets in the year 1947 when its parent company Nestle brought it to India.

Who was the founder. Julius Maggi founded the soup and noodles company in 1884 in Switzerland.

When it was acquired. It was acquired by Nestle in the year 1947.

When it was banned. Maggi was banned in the year 2015. There were high levels of carbs and Monosodium Glutamate in Maggi. Someone complained and upon checking Maggi was found guilty and banned from the Indian market till it came clean.

Maggi did not take too long to get back. In fact it never ceased marketing when it was banned. They kept the brand name alive in the minds of people by engage in social media and trying to produce nostalgia by reminding people how much they missed the attention!

When it got back. Maggi got back into shelves in the same year 2015, November after clearing the food tests.

Before the ban Maggi had a market share of almost 80%. After the ban it went to 5%, but recovered soon after and at present its market share is something around 67%.

The marketing strategies of Maggi. The four P’s of marketing – product, price, place and promotion – are well executed for the Maggi success story.

Before Nestle brought Maggi to the Indian market, the concept of noodles and soup was alien to the Indian households. Maggi started targeting the housewives and positioned Maggi as a convenience food that can be cooked quickly in a busy schedule.

The strategy did not work out too well and Nestle rethought the marketing plan to include the needs of the ultimate consumers of the product – kids. It was placed as a convenient that is tasty and healthy as well.

Nothing better to allay the concerns of the Indian mother for her kids and too coming at a reasonable price and is quick!

This rebranding message caught the attention of the Indian housewives and the Maggi marketing took off!

After its ban on 2015 when Maggi cleared the food tests, it got a tie up with snapdeal.com an ecommerce platform for a flash sale. The sale was a success with Maggi selling over 50K packets under 5 minutes.

The packaging of Maggi has been kept uniform over the years with little change in design. It is a conscious decision made to reinforce the brand image in the minds of people.

The pricing strategy is also well thought out. It does not cost too much even now to buy a packet of Maggi. The company has played a little trick here. They made the packaging a little bit thick and reduced the amount.

So in place of 100gm noodles people were getting 70gm, but they did not notice or did not mind as the price was the same! It was an effort at focusing on the price sensitivity of customers.

What lessons can be learnt from the Maggi story. Create a story that resonates with your target market. Target the emotional side of the market, emotions play a key role in marketing. Mistakes can rectified with public acceptance and rectifying them quickly. Be consistent with the messaging.

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