Maggi Case Study

Nestle was involved in the unethical marketing practices, endangering consumer health to promote its infant formula in developing nation. Nestle often used deception and doublespeak to justify its unethical business practices. Many NGOs and groups spread the word about Nestlé’s unethical practices making people to boycott its products. Later Nestle changed its policy and stops free sampling and aggressive marketing techniques. Nestle promoted the infant formula over breast milk which caused the illness and death of many infants in the developing countries. There are many reasons that contribute to it:

This was only the beginning of Nestle USA’s problems. By early 2000, the project had already turned into a fiasco. Workers could not comprehend how to use the new system and did not comprehend the new work processes they were being coerced to accept. Divisional executives were just as perplexed as their subordinates as they were excluded from the planning and development of the new system and were reluctant to aid in rectifying the problem that had rapidly developed. The end result of this was that company morale dramatically fell and employee turnover had far skyrocketed.

Newspaper in the United Empire and ireland reported that ITX could take their products. Nestle issued a statements in China and Singapore, protecting the safety of these milk in those countries. This can be a Nestle record from Singapore: "We wish to encourage all events that our baby milk items are safe for use and we adhere to the strict examination and safety requirements needed by the Singapore Agri - Food and Veterinary Power" (Young, 2005 , p.15). The situations of ITX in milk were reported in the United Claims, Europe and South Africa as well.The above statements are excerpts from the Case Study given. Here I want to explain that how this crisis become a global crisis. How does it become a global crisis? First of all, as we all know, Nestle brand is an international brand which is very famous for its dairy products. Around the world, when called Nestle, everyone will inevitably associate with baby milk products, milk for adults, supplement drinks and snacks like Maggi. So, when the occurrence of a crisis involving Nestle products, then we will certainly wonder whether the products sold in our country are safe to eat or whether the products sold in our country involved with ITX incidents reported in countries such as Italy, United States, Canada and South

Nestlé has to determine the current strength and weakness of the Maggi brand by gaining feedback from the consumers. This data can be used to make decisions on the current business problem faced by Nestlé.

Maggi is the top among all the brands in the present scenario in noodles category.

Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ - Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer-goods/nestle.html, para. 1). The merger in 1905 between Nestle and the Anglo-Swiss Milk Company created the Nestle we know today. Nestle is one of the world’s largest suppliers of food and nutritional products operating with 461 factories in 83 countries, with 328,000 employees worldwide (Fries, Lorin, Goldberg, Ray, 2012. Nestle: Agricultural Material

The whole state of California has been hurt from Nestlé's doings. And probably is other resources they go to four. Everyone around the world could be affected by Nestlé's corporation leaving people with less work to bathe cook and drink. Nestlé is immensely profiting while sucking the world dry leaving millions of people without a drop to drink. The CEO thanks water should be

In case of pasta product development, Nestlé took benefit of acquiring Lambert’s Pasta and Cheese which has the required experience for manufacturing and marketing in this category. NRFC did not perform a test market, but due to Lambert’s Pasta and Cheese experience, the risk of product failure was very limited. However for pizza and topping development, NRFC has faced technical problems that forced the company to drop the preassembling pizza concept even with 52% positive purchase intent. Because of the competition with Kraft, NRFC has skipped test market and consider pizza as natural extension to its existing product line. However, pizza product will take benefit from efficient existing supply chain management. Therefore pizza, will expend less to establish the distribution channel. Due to pasta product similarities, NRFC believes that marketing inputs from previous product are enough, hence marketing researches and tests where slightly different. No

General Mills (GSI) is the sixth largest food company in the world. The company currently operates in more than 100 foreign countries and employs over 35,000 people. . GSI manufactures and markets branded consumer foods worldwide and supplies branded and unbranded food products to the foodservice and commercial baking industries. The company manufactures cereals, yogurt, ready-to-serve soup, dry dinners, frozen vegetables, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza, flour, fruit and snacks; and organic products, including soup, granola bars, and cereals; and ice cream and frozen desserts, and high fiber snacks. Its best

Maggi Noodles is the leader of the market in India. Nestle want to explore the potential Maggi in the Indian market.90%of market share in this segment now.

Third alternative is to stand by, because the risk of non profitability is too high and because the perceived price and quality value does not give the product the best positioning. Nestlé should wait until doing deep test market to be sure about parent brand penetration rate and resolve price/value and positioning problem by trying to reduce product price. If this option is chosen, Nestlé will lose the first mover advantage, pre-empted by competitors and probably will never get the deserved market share.

Maggi noodles is a brand of instant noodles manufactured by Nestlé. The brand is popular in Australia, India, South Africa, Brazil, New Zealand, Brunei, Malaysia, Singapore, Sri Lanka, Bangladesh, Fiji and the Philippines. Maggi is Malaysia’s no 1 bag noodles and voted as best Performing brand by Readers Digest Readers Survey (2000 / 2001 / 2002). Good range of great tasting popular flavours.

Nestle is the world’s leading nutrition, health and wellness company. From Henri Nestlé’s humble beginnings with the first product, Farine Lactée, which revolutionized infant feeding, the company’s priorities have remained the same -about bringing high quality, safe and nutritious foods and beverages to people through all stages of life. In Nestle’s pursuit of delighting and satisfying the customers, Nestle’s products are adapted to meet local, regional taste preferences, religious and cultural sentiments and disparities in purchasing power.

According to me Nestle have only focus on the economic responsibilities and has been concern about the shareholders acceptations than the society. There is a wide space for improvement in the company’s policies towards society and environment.

Nestlé felt the effects of World War II immediately. Profits dropped from US$20 million in 1938 to US$6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped