Pest Analysis: Pestle Analysis Of Maggi

987 Words4 Pages
PESTLE ANALYSIS OF MAGGI

Presented BY:-
Aastha Chamaria – UM15249
Chayan Bhattacharya – UM15261
Nishant Panda – UM15273
Rachna Edakandy – UM15285
Sauveek Sahu – UM15297

Problem Statement:
Maggi has been in the limelight recently for all the wrong reasons. It had been accused of containing lead above the prescribed levels and monosodium glutamate (MSG), which is a taste enhancer. MSG has been banned as an ingredient in pre-packaged noodles in India. However, Nestle included it in its ingredients and failed to mention so in its packaging. The ill-effects of MSG include chest pain, headache and nausea. It is especially harmful to expectant mothers and kids, even if the intake is in extremely small doses.
V K Pandey, a Food Safety and
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As of 28th of May, 2015, the shares of Nestle were down by 15 percent from Rs 7,038.65 to Rs 6,010.80. The economic ramifications of the ban on Maggi impacted the entire the instant noodle industry due to increased levels of caution amongst the consumers. It led to HUL and Indo-Nissin Foods to take down their Knorr and Top-Ramen brands from the market. As per Brand Finance, due to the controversy surrounding Maggi, there has been a $200 million dollar brand value erosion for Nestle from $2.4 billion to $2.2 billion. The instant noodle sales in India have reduced by 90% from 350 crore to 30 crore within a month after the…show more content…
It also impacted the associated vendors and stall owners who were involved in the sale of Maggi. The trust level of consumers from the whole instant noodles industry has decreased and this has led to an increased degree of awareness among them about ingredients and food safety. The credibility of the celebrities including Madhuri Dixit, Preity Zinta and Amitabh Bachchan was also dragged to the mud as they became infamous for endorsing this brand. Also, the major social media platforms got flooded with responses, views and opinions relating to the entire issue. Posts and updates of the Maggi ban became the trending topic on Facebook newsfeed and
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