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The Comeback of Maggi

In today’s buzz, we talk about how Nestle Maggi came back strong from no sales for 5 months to become the top noodle brand again.

The Story,

Maggi was originated in Switzerland by Julius Maggi in 1884 and it was acquired by the Nestlé Company in 1947 to form Nestlé-Alimentana S.A and that’s where the whole revolution of the company has started.

In 1983 Nestlé decided to launch its Maggi Noodles in India. The brand didn’t take off like a storm. For the first 10 years, the brand made a loss. After gaining consumer trust it grew 7 times in the next 8 years and became one of the iconic brands in the country. The brand achieved the cult status of the Most Trusted Brand, Second Largest FMCG Brand, and Most Powerful Brand.

All the accomplishments shattered by the event that everyone refers to as ‘The 2015 Maggi Crisis’. The catastrophic collapse of Maggi that 98% consumer trust gone to 3%, the 15000 tons production to 0 tons production. All the 4 million retailers, 4 lakh farmers producing wheat, 15000 suppliers, 2000 distributors lost their jobs and Nestlé India lost its 27% of market share. It was a life-threatening event for the company.

The Comeback,

When the global CEO Paul Bulcke came to India and said, “What we do here is only with the consumer in mind. I don’t feel this is the right environment to have the product on shelves” and the reverse logistics of the largest kind that has ever done in India, every single pack of Maggi noodles gets picked up from 4 million outlets in India. Nestlé decided to fight not to flight and challenged the Maggi ban in Bombay HC. The company had allowed going through the test from accredited laboratories.

While the battle against the FSSAI is going on, all the consumers coming on social media and saying that they miss Maggi and the social media campaign has started.  To reconnect and reciprocate with the consumer, Maggi started the advertisement with the tagline #WeMissYouToo. The simple objective of the company was to bring Maggi back.

There was a reverse trend happening after US FDA cleared Maggi Noodles after testing from accredited laboratories. Maggi took Taj hotel as their inspiration and started to rebuild the brand. Maggi started to address the main concern of every mother about the nutrition of the food and to regain the trust of the consumer by starting the advertisement “Your MAGGI is SAFE, has always been”.

When the Maggi noodles ban was revoked in Aug 2015, the supply chain of Maggi noodles restarted. The people worked overnight to get Maggi to 120,000 outlets and 350 towns. They started to sell online on Snap deal and 60,000 boxes sold in under 5 min.

To energize the relaunch, the company launched different ad campaigns of the people who brought them into the business Dhaba Valas, Young mother, Hostel students with the taglines #WelcomeBack, #NothinglikeMAGGI.

And, MAGGI became the market leader again….

Interesting facts,

  • Maggi is pronounced as mag .gio(not ma. gee), because of its Swiss-Italian founder Julius Maggi (mag .gio).
  • The advertisement of the product is done before the product was not on the shelves.
  • The Largest reverse logistic was done by Nestle Maggi in India.

 

Success is not final; failure is not fatal.

It is the courage to continue that counts.